Bangkok--21 Mar--Fitch Ratings
Fitch Ratings (Thailand) Limited has today assigned final National ratings of ‘AAA(tha)’ to Siam Panich SPV 1 Company Limited’s (“the issuer”) forthcoming issues of up to THB2.5 billion Tranche A debentures no.1/2006 and up to THB2.5bn Tranche B debentures no. 2/2006.
The ratings address the timely payment of interest and ultimate repayment of principal by the legal final maturity in March 2012 for the Tranche A debentures and March 2014 for the Tranche B Debentures.
This transaction represents the securitisation of auto hire purchase receivables originated by Siam Panich Leasing Public Company Limited (“SPL”, rated ‘BBB+(tha)’/‘F2(tha)’ on a Positive Watch), a leasing company which is currently 36% owned by Siam Commercial Bank (“SCB”, rated ‘AA(tha)’/‘F1+(tha)’). SPL will sell eligible receivables to the issuer on a revolving basis. Tranche A will include a one-year revolving period followed by a controlled amortisation period while Tranche B will include a three-year revolving period, followed by a controlled amortisation period. Interest will be paid on a monthly basis. The purchase of the receivables will be 75.6% funded by the issuance of debentures while the payment of the remaining 24.4% will be deferred as credit enhancement.
Fitch’s ratings are based on the subordination of 24.4% for credit loss protection, available credit enhancement to mitigate commingling risk, and the quality of the receivables pool which includes at least 75% of new car financing. The ratings also take into account the eligibility criteria to protect investors from any deterioration in the portfolio owing to its 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. In addition, the ratings consider SPL’s originating and servicing capabilities and 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.
The issuer, a special-purpose company with limited liability established under Thai law, is granted special-purpose vehicle status under Thailand’s Securitisation Law. The purchased assets will have a value of approximately THB6.6bn at the initial cut-off date.
A copy of the new issue report will be available on the agency’s web site, www.fitchratings.com . and Fitch’s Asia website www.fitchratingsasia.com
Contact: Pimolpa Simaroj, Orawan Karoonkornsakul, Vincent Milton; Bangkok, Tel: +662 655 4755; Hilary Tan, Wit Solberg, Hong Kong, +852 2263 9904