New Issue: Credito Issuing 3 Ltd.

Ratings Class Rating Class size (ILS) Credit enhancement (%) Interest* Legal final maturity A AA- (sf) 292,553,320.57 15.0 Prime rate plus 1.8% March 2058 B NR 51,627,056.57 0.0 Prime rate plus 8% March 2058 *The prime rate is the Bank of Israel rate + 1.5%. ILS--Israeli new shekel. NR--Not rated. S&P Global Ratings assigned its 'AA-' credit rating to Credito Issuing 3 Ltd.'s class A notes. Credito Issuing 3 Ltd. is an RMBS transaction that securitizes an all-purpose mortgage portfolio of first- and second-lien loans granted to Israeli individuals secured by residential properties in Israel. This is the third Israeli RMBS securitization that we have rated, and the second transaction originated by Credito Ltd. group (Credito) that we have rated.

...Key factor Description Underwriting criteria We consider the loans to be prime mortgages, based on their good performance and the originator's underwriting criteria. The portfolio consists of French-amortizing loans only, linked to the Israeli prime rate plus a margin. The Israeli prime rate equals the Bank of Israel rate plus 1.5%. The pool is well- diversified geographically with 34% of the portfolio located in Jerusalem and 16% in Tel-Aviv. The portfolio's original loan-to-value (OLTV) ratios and current loan-to-value (CLTV) ratios are relatively low, at 64.6% and 59.8 %, respectively. At origination, the OLTV ratio is capped at 70% for first lien loans, which is below the market limit of 75%. Regarding second lien loans, underwriting criteria caps OLTV ratios at 75%. Similarly, the repayment-to-income ratio is also capped at 40%. Interest rate risk Both assets and liabilities are referenced to the Israeli prime rate plus a margin. Therefore, interest rate risk is mitigated and we have...

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