Bangkok--24 Nov--Fitch Ratings
Fitch Ratings (Thailand) Limited has today said in a performance report on DAD SPV Company Limited (DAD SPV) that the transaction has shown stable performance. All reserves (covering expected cash outflows for the next 12 months) have been fulfilled upon the receipt of annual lease payments in October 2010. The transaction is a securitisation programme initiated by the Thai government and originated by Dhanarak Asset Development Company Limited.
“This transaction is backed by the 30-year committed lease payments of the government office centre to be made by the Treasury Department, which is the sole underlying obligor under the lease agreements. Thus, the transaction is credit-linked to the credit rating of the Treasury Department. In late October 2010, the Treasury Department made a one-year lease payment covering the period October 2010 to September 2011. The amount was subsequently allocated to fulfill reserves required under the transaction documents. This allows the transaction to maintain a debt service coverage ratio of at least 1.0x. The rating affirmations at ‘AAA(tha)’ and Stable outlooks also reflect the transaction’s ability to withstand a higher refinancing rate than Fitch’s assumption,” says Orawan Karoonkornsakul, Senior Director in Fitch Thailand’s Structured Finance team.
Contacts:
Orawan Karoonkornsakul
Senior Director
+662 655 4766
Fitch Ratings (Thailand) Limited
Wave Place 13th floor, 55 Wireless Road
Bangkok 10330, Thailand
Wasant Polcharoen
Director
+662 655 4758
Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as ‘AAA(tha)’ for National ratings in Thailand. Specific letter grades are not therefore internationally comparable
Additional information is available at www.fitchratings.com.