Bangkok--Jan 27--Fitch Ratings
Fitch Ratings (Thailand) Limited has today assigned Eternal Credit Card Special Purpose Vehicle Company Limited’s (“Eternal”) upcoming issues of up to THB1.0 billion Class A-1 debentures and up to THB 1.0bn Class A-2 debentures (“the debentures”) expected National ratings of ‘AAA(tha)’.
The expected ratings address timely payment of interest and ultimate repayment of principal by the legal final maturity in November 2009 for the Class A-1 debentures and in November 2011 for the Class A-2 debentures. Provided an early amortisation or an event of default does not occur, the debenture holders are expected to receive the principal of Class A-1 debentures and Class A-2 debentures on the expected maturity dates in February 2008 and February 2010, respectively. Interest will be paid on the 10th of each month.
This transaction represents a securitisation of credit card receivables originated by AEON Thana Sinsap (Thailand) Public Company Limited (“AEONTS”), a Thai consumer finance operator rated ‘A-(A minus)(tha)’/‘F2(tha)’. AEONTS will sell eligible receivables corresponding to eligible accounts to the issuer on a revolving basis. At the closing date, the purchase of receivables will be funded by the issuance of debentures, the subordinated loan to be provided by AEONTS and the seller participation to be held by AEONTS.
Fitch’s expected ratings are based on the subordination of 29% and reserve funds that will serve as credit enhancement; minimum seller participation to mitigate the dilution risk, and the quality of the receivables pool. They also take into account the eligibility criteria to protect investors from any deterioration in the portfolio owing to its initial revolving nature, various early amortisation trigger events to protect investors against any severe deterioration in the portfolio and insolvency risks affecting the originator or servicer, and AEONTS’s originating and servicing capabilities. In addition, they consider the appointment of the Hongkong and Shanghai Banking Corporation Limited, rated ‘AA’/‘F1+’ on the international scale, as back-up servicer; as well as the sound financial and legal structures of the transaction.
Eternal, a special-purpose company with limited liability established under Thai law, is expected to be granted special-purpose vehicle status under the Securitisation Law. The purchased assets are expected to have a value of up to THB3.0bn at the initial cut-off date in early February 2005.
The ratings are contingent upon receipt of final documents including legal opinions and signed agreements conforming to information already received and SEC approval of the securitisation programme.
A copy of the presale report will be available on the agency’s web site, www.fitchratings.com. and Fitch’s Asian website www.fitchratingsasia.com
Contact:
Orawan Karoonkornsakul, Pimolpa Simaroj, Vincent Milton;
Bangkok, Tel: +662 655 4755;
Hilary Tan, Ben McCarthy,
Hong Kong, +852 2263 9904
Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with sub- or low-investment grade international sovereign 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. End.