Bangkok--8 Feb--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"), respectively. 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 programs issued by Osprey Series 1 Company Limited ("Osprey 1") and Osprey Series 2 Company Limited ("Osprey 2"), which act 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 commercial papers issuance by Osprey 1 and Osprey 2.
The ratings assigned to the programmes are based mainly on the buy-back support by NHA to cover delinquent hire purchase receivables, the strength of the servicing provided by NHA, over-collateralisation of assets, the reserve funds, the 100% revolving liquidity facility provided by Krung Thai Bank ("KTB", rated 'AA+(tha)'/'F1+(tha)'), and the interest rate swap agreement with KTB to hedge against Osprey 1 and Osprey 2's interest-rate risk.
As of December 2006, NHA SPV's bonds had a remaining balance of THB74.2 million, while NHA SPV 2's bonds had a remaining balance of THB326.9m. The over-collateralisation levels have been maintained at 10% for NHA SPV, and 15% for NHA SPV 2 since closing. Given the bonds 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 of the transactions.
The assets are 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 1 and Osprey 2 will be available on the agency's web site, www.fitchratings.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.
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