For July 2020, the 3 Month Average NPL / NPV of Leases, early amortisation trigger was reported at 2.97% marginally close to the 3% covenant. Reflecting an increase in arrears, in line with the current economic environment.
Fully Performing Leases (+ leases up to 30 days in arrears) as a percentage of book exposure was the lowest since October 2016 at 90.4% in June 2020, in line with current economic environment. However, the Fully Performing Leases (+ leases up to 30 days in arrears) / Rated Notes, remains in line with pre-COVID 19 months albeit exhibiting a decreasing trend.
The Dashboard covers the period from February 2019 to February 2020 and is part of GCR’s performance monitoring process and does not constitute rating action or rating reports. GCR will update the Dashboards at least on a quarterly basis.
From October 2019, the Liquidity Reserve now excludes the excess cash in the transaction, previously reported as "Accrual for Tax and Vat". This cash was partly utilised for the purchase of asset leases (increasing the excess spread reported in the Capital Reserve) with the balance remaining in the transaction. In addition and in line with transaction documents, from December 2019 the excess spread is no longer being included in the Capital Reserve balance. The impact of this on the Asset Cover ratio is the increase seen from October 2019 and subsequent decline in December 2019.
The Dashboard exhibits key performance metrics related to the MW Asset Rental (RF) Ltd transaction, which include credit enhancement levels, excess spread, defaults, recoveries and covenants.