Bangkok--30 Jun--Fitch Ratings
Fitch Ratings has today affirmed the ‘AAA(tha)’ rating of the THB1.5 billion asset-backed debentures (“the bonds”) issued by Eternal Special Purpose Vehicle Company Limited (“Eternal” or “the issuer”) in February 2004 with a Stable Outlook. The rating addresses the likelihood of full and timely payment of interest and ultimate repayment of principal by legal final maturity in February 2010.
The affirmation reflects the satisfactory performance of the underlying receivables against the agency’s base-case expectations, as well as the continued strong excess spread and relatively low delinquency and default levels during the past two years. Performance of the securitised pool during the next 12 months should remain at a satisfactory level, although asset quality may weaken due to a deteriorating operating environment and tough competition in the industry.
This transaction is a securitisation of hire purchase receivables corresponding to consumer products originated by AEON Thana Sinsap (Thailand) Public Company Limited (“AEONTS”), a Thai consumer finance operator currently rated ‘A-(tha)’(A minus)(tha)/‘F2(tha)’ with Negative Outlook. The bonds are backed by a pool of eligible consumer hire purchase receivables, including those generated by the purchase of electrical appliances, decorative household goods, office supplies, mobile phones and sports equipment, under an assignment of rights to receive cash flows (“the collateral”). The transaction is currently in a three-and-a-half-year revolving period, during which time asset substitutions may be made, subject to eligibility criteria.
A copy of the surveillance report is available on the agency’s website, www.fitchratings.com and fitchratingsasia.com
CONTACTS: Napachak Phasukavanich, Orawan Karoonkornsakul, Vincent Milton; Bangkok, Tel: +662 655 4755
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.
Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s public site, www.fitchratings.com . Published ratings, criteria and methodologies are available from this site, at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the ‘Code of Conduct’ section of this site.