Bangkok--17 Dec--Fitch Ratings
Fitch Ratings (Thailand) Limited has today affirmed the National ratings of bonds issued by Siam Panich SPV 1 Company Limited (Siam Panich SPV). The transaction is a securitisation transaction of auto hire purchase receivables originated by Siam Commercial Leasing Public Company Limited (SCBL, ‘A+(tha)’/Stable/‘F1+(tha)’). The rating actions are as listed below:
THB992.5m Tranche B bonds (legal final maturity in March 2014) affirmed at ‘AAA(tha)’; Outlook Stable; Loss Severity Rating ‘LS1’.
The rating affirmation and Stable Outlook are underpinned by the transaction’s stable credit enhancement (CE) level, high seasoning of the portfolio, and the continued improvements in the portfolio’s performance.
“Since late 2008, the performance of Siam Panich SPV’s portfolio has been improving with declining delinquencies. The portfolio’s cumulative default rate has been within Fitch’s base case assumption. As the average paid term represents approximately 73% of the average original term, the portfolio has become highly-seasoned so the additional default should be modest. Also, the transaction has been able to maintain the CE level at 24.2%, the level provided at closing,” says Orawan Karoonkornsakul, Senior Director in Fitch Thailand’s Structured Finance team.
Fitch believes that the portfolio’s existing CE level and high seasoning serve as a buffer for the future performance of the transaction. The agency also views SCBL’s servicing capability as relatively strong given the company’s long experience in the auto hire purchase market. Tranche A bonds were paid in full on their expected maturity date in March 2010, while the Tranche B bonds are now in their controlled amortisation period with an expected maturity date in September 2011.