Frankfurt, November 13, 2008 -- Asset-backed securities (ABS) transactions backed by consumer loan portfolios in the Europe, Middle East and Africa (EMEA) region accounted for an outstanding pool balance of EUR 26.7 billion distributed among 44 underlying pools of receivables as at the end of the third quarter of 2008, says Moody's Investors Service in its new index report for the EMEA consumer loan ABS market. Moody's index report covers performance data up to the end of September 2008 and provides details on delinquencies, defaults and losses for EMEA consumer loans ABS transactions.

"Over the past twelve months, Moody's consumer loan 90-180 days delinquencies index has increased from 0.42% to 0.91% as of the end of Q3 2008," says Olimpia da Silva, a Moody's Associate Analyst and author of the report. "The net cumulative default index ended in Q3 2008 at 0.99% which constitutes a rise of 0.23% from Q3 2007. Cumulative losses showed a marginal increase of 0.18% during the past four quarters and stood at 0.88% as of Q3 2008."

The EMEA consumer loan ABS segment displayed an average constant prepayment rate of 13.5% in Q3 2008 and showed a slightly decreasing trend in the recent past. Moody's notes that differences in transaction definitions limit the comparability of performance data and caution needs to be applied when reviewing this information.

Generally, EMEA consumer loan portfolios backing ABS transactions comprise three types of loans: personal loans, purpose loans and auto loans. The transactions are backed by portfolios from various EMEA jurisdictions, the largest markets being Spain and Italy at present.

"Although 3rd Quarter GDP results have not been released across most EMEA countries, the 2nd quarter results appear to mark the opening of a recession in the major economies in the region," says Nitesh Shah, a Moody's Economist and co-author of the report. "As global oil and food prices have fallen, the inflationary pressure across much of Europe has now passed. A slowing economy will further lower inflationary pressure. Indeed, the falling price pressure has allowed the ECB to respond to the threat to output growth (and hence medium term prices) and so far it has cut rates by 1% in the current cycle," adds Mr. Shah.

Moody's report, entitled "EMEA Consumer Loans Q3 2008 Indices" can be found on www.moodys.com under the Credit Index category of the Structured Finance research.

-Ends-

Frankfurt
Marie-Jeanne Kerschkamp
Managing Director
Structured Finance Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Frankfurt
Olimpia da Silva
Associate Analyst
Structured Finance Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Copyright 2008, Moody's Investors Service, Inc. and/or its licensors and affiliates including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved.

© Press Release 2008

 

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