Bangkok--Apr 21--Fitch Ratings
Fitch Ratings (Thailand) Limited today assigned an expected National rating of ‘AAA(tha)’ to SICCO Special Purpose Vehicle Company Limited’s (“SICCO SPV 1”) upcoming THB4.0 billion issue of debentures (“the debentures”). The expected rating addresses timely payment of interest and ultimate repayment of principal by the legal final maturity in November 2011. Provided an early amortisation or an event of default does not occur, full principal repayment may occur by the expected maturity date in November 2009.
This transaction represents a securitisation of auto hire purchase receivables originated by Siam Industrial Credit Public Company Limited (“SICCO”), a Thai finance company which is currently 39% owned by Siam Commercial Bank. On the closing date, SICCO will sell eligible receivables to the issuer on a revolving basis. The purchase of receivables will be 81% funded by the issuance of debentures and the payment of the remainder 19% will be deferred as credit enhancement.
Fitch’s expected rating is based on the quality of the receivables pool (which includes only new vehicle financing originated in Bangkok), available credit enhancement (including reserve funds), SICCO’s originating and servicing capabilities, as well as the sound financial and legal structures of the transaction. It also takes into account the eligibility criteria imposed to protect investors from significant 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. It also factors in Hongkong and Shanghai Banking Corporation Limited acting as the back-up servicer.
SICCO SPV 1, 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 shall have a value of up to THB4.9bn at the proposed initial cut-off date, 30 April 2005.
The rating is 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: Pimolpa Simaroj, Orawan Karoonkornsakul, 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.