Bangkok--6 Sep--Fitch Ratings
Fitch Ratings (Thailand) Limited has today affirmed the National ‘AAA(tha)’ rating of the THB4.0 billion asset-backed debentures (“the bonds”) issued by SICCO Special Purpose Vehicle 1 Company Limited (“SICCO SPV 1”) in May 2005. The rating addresses the likelihood of full and timely payment of interest and ultimate repayment of principal by the legal final maturity in November 2011.
The affirmation reflects the satisfactory performance of the underlying receivables against the agency’s base-case expectations. Since closing in May 2005, the coverage ratio of the portfolio has been relatively stable, while the delinquency and default rates of the portfolio have been relatively low. Nonetheless, asset quality may weaken due to persistently high oil prices, the rising interest rate environment and slower economic growth.
This transaction is the first securitisation transaction of auto hire purchase receivables originated by Siam Industrial Credit Public Company Limited (“SICCO”), a Thai finance company. On the closing date, SICCO sold eligible receivables to the issuer on a 1.5-year revolving basis followed by a controlled amortisation period. The purchase of receivables was 81% funded by the issuance of debentures and the payment of the remainder 19% was deferred as credit enhancement. The receivables continue to be serviced by SICCO, while the Hongkong and Shanghai Banking Corporation Limited (“HSBC”, rated ‘AA/F1+’ on the international scale) is the back-up servicer. The transaction is still in the revolving period, and will start the controlled amortisation period in December 2006.
A copy of the surveillance report will be available on the agency’s web site, www.fitchratings.com and Fitch’s Asian website www.fitchratingsasia.com
Contact: 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.