Bangkok--30 Sep--Fitch Ratings
Fitch Ratings (Thailand) Limited has today revised the Outlook on the debentures issued by SICCO Special Purpose Vehicle 2 Company Limited (SICCO 2) to Stable from Negative, and simultaneously affirmed the rating at ‘AAA(tha)’ with a Loss Severity Rating of 'LS-1'. The transaction is the second securitisation transaction of auto hire purchase receivables originated by Siam Industrial Credit Public Company Limited (SICCO). The rating actions are as listed below:
THB415m (legal final maturity in February 2013) affirmed at ‘AAA(tha)’; Outlook revised to Stable from Negative; Loss Severity Rating 'LS-1'.
The rating affirmation and Outlook revision are supported by an increase in the credit enhancement (CE) level, high seasoning of the portfolio, the recent improvement in SICCO 2’s portfolio performance, and more favourable economic conditions.
“The performance of SICCO 2’s portfolio has been within Fitch’s base case assumptions and has been improving since early 2010. As the average paid term represents approximately 75% of the average original term, the portfolio has become highly-seasoned and should have less exposure to large additional losses. Also, the existing CE level of 37.5% (versus 22.5% provided at closing) should allow the transaction to withstand an approximately 60% higher cumulative default rate than Fitch’s base case assumption,” says Orawan Karoonkornsakul, Senior Director in Fitch Thailand’s Structured Finance team.
Fitch views that the portfolio’s strong CE level and high seasoning serve as a cushion for the future performance of the transaction. Meanwhile, a possible change in SICCO’s major shareholder is not expected to result in any material changes in its operation in the near-term. The transaction is now in its controlled amortisation period with an expected maturity date in February 2011.
Contacts:
Lead Surveillance Analyst
Orawan Karoonkornsakul
Senior Director
+662 655 4766
Fitch Ratings (Thailand) Limited
Wave Place 13th floor, 55 Wireless Road
Bangkok 10330, Thailand