Bangkok--Nov 30--Fitch Ratings (Thailand)
Fitch Ratings (Thailand) Limited today affirmed the National Long-term rating of ‘A+(tha)’ on the 10-year and 20-year amortising debentures (“the bonds”) issued by NHA SPV Company Limited (“NHA SPV”) and NHA SPV 2 Company Limited (“NHA SPV 2”). At the same time, the agency also affirmed the National Short-term rating of ‘F1(tha)’ on the entire series of short-term debenture rollover programmes issued by Osprey Series 1 Company Limited (“Osprey 1”) and Osprey Series 2 Company Limited (“Osprey 2”), which are acting as funding conduits for NHA SPV and NHA SPV 2, respectively. Both transactions constitute the securitisation of Thai residential hire-purchase receivables originated by the National Housing Authority of Thailand (“NHA”), which are, in turn, financed through a commercial paper issuance by Osprey 1 and Osprey 2.
The ratings assigned to the programme are based mainly on the buy-back support by NHA to cover delinquent hire purchase receivables; the strength of the servicing provided by NHA; overcollateralisation of assets; the reserve funds; the 100% revolving liquidity facility provided by Krung Thai Bank (“KTB”, rated ‘AA+(tha)’/‘F1+(tha)’ by Fitch); and the interest rate swap agreement with KTB to hedge against Osprey 1 and Osprey 2’s interest-rate risk.
As of October 2005, NHA SPV’s bonds had an outstanding principal balance of THB130.6 million against the remaining portfolio of THB143.7m, while NHA SPV 2’s bonds had an outstanding principal balance of THB501.6m against the remaining portfolio of THB576.9m. Given the bond amortisation and the buy-back support arrangement with NHA, the available buy-back facility now effectively covers 100% of bonds outstanding for both transactions, which provides further support to the ratings.
The assets will continue to be serviced by NHA, which Fitch believes has the expertise necessary to manage the loans it originates. NHA, a wholly-owned state enterprise, is rated ‘A+(tha)’ by Fitch based on full government ownership and control of its operations, its policy role as the key provider of social housing for low-income families and funding support as evidenced by historical budget appropriations and government-guaranteed funding. Fitch’s rating for NHA also factors in its weak stand-alone financial position and the absence of any explicit government guarantee for the full and timely repayment of all NHA’s liabilities.
A copy of the performance report for Osprey Series 1 and Osprey Series 2 will be available on the agency’s web site, www.fitchratings.com.
For more information please contact:
Pimolpa Simaroj, Orawan Karoonkornsakul, Vincent Milton; Bangkok,
Tel: +662 655 4755. End.