Fitch applies BBB+ to FADE notes

Fitch Ratings said it assigned a BBB+ (EXP) rating to Fondo de Titulizacion del Deficit del Sistema Electrico FTA's (FADE) €1.3 billion series 21 notes.

The outlook is stable.

FADE is the government-sponsored securitization platform that issues securities backed by the electricity tariff deficit (TD) cash flows in Spain.

Proceeds from the new notes will be used for the refinancing of series 2 notes, which mature on June 17, 2015.

The series 21 notes mature on Sept. 17, 2019, and pay an annual fixed interest rate of 0.85%.

All FADE bonds are credit-linked to Spain's issuer default rating (BBB+/stable), as they benefit from an explicit and irrevocable guarantee from the government. The series 21 issuance has no rating impact on the outstanding series 2, 3, 4, 10, 13, 14, 16, 17, 18, 19 or 20 notes, as the terms of the guarantee remain unaltered.

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