Sector developments and company hires

AMCO deal completed
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as a result of a partial corporate demerger. Zenith Service acts as the SPV’s corporate servicer, calculation agent and representative of the bondholders.

BBC CMBS downgraded
Moody's has downgraded to A3 from A2 the ratings of the class A notes issued by three UK CMBS backed by buildings in which the BBC is the sole tenant, affecting approximately £1.07bn securities. The move reflects the recent downgrade of the UK's government bond rating to Aa3, with a stable outlook, from Aa2 with a negative outlook.

The affected transactions are Juturna (ELoC 16), Pacific Quay Finance and White City Property Finance, which financed sale and leaseback structures involving the BBC and key specialised operational properties located in London and Glasgow. Moody’s notes the BBC’s sensitivity to the UK's sovereign rating and the uncertainty around the upcoming mid-charter review process that will settle the license fee funding level from April 2022.