Ratings agency Standard & Poor’s has assigned an ‘AAA’ preliminary rating to the class A €150m (US$137.9m) asset-backed floating-rate notes to be issued by Italian food giant Cremonini.
“The collateral backing the notes is a portfolio of trade receivables originated by three subsidiaries in the Cremonini group of companies, an integrated food business domiciled in Italy,” said Cian Chandler, ratings analyst at Standard & Poor’s Structured Finance Ratings group.
The three sellers whose receivables will be purchased by the issuer are Industria Alimentare Carni, Montana Alimentari and Marr. Industria Alimentare Carni and Montana are meat and food-processing companies, whereas Marr is involved with the group’s food distribution activities.
The preliminary rating reflects the credit quality of the underlying receivables and the minimum credit support that dynamically adjusts on a monthly basis to provide coverage for a stressed level of historical portfolio losses, dilutions, and carrying costs.
The receivables are also subject to strong eligibility criteria, a sound cash flow structure, and certain mechanisms in place to protect investors and ensure timely payment of interest and ultimate repayment of the principal under the rated notes.