Bangkok--16 Mar--Fitch Ratings
Fitch Ratings (Thailand) Limited has today assigned an expected National Long-term rating of 'AAA(tha)' to SICCO Special Purpose Vehicle 3 Company Limited's ("SICCO SPV 3") upcoming issue of debentures ("the debentures") of up to THB3.0 billion. The expected rating addresses the timely payment of interest and ultimate repayment of principal by the legal final maturity in April 2012. Provided an early amortisation or an event of default does not occur, the full principal repayment should be completed by the expected maturity date in October 2010. The rating, however, does not take into account the probability of early amortisation.
This transaction is the third securitisation transaction of auto hire purchase receivables originated by Siam Industrial Credit Public Company Limited ("SICCO"), a Thai finance company. The eligible receivables will be purchased by the issuer at closing, by using the proceeds from the issuance of the debentures (equivalent to 79.2% of the purchase price) with the remaining 20.8% to be deferred as credit enhancement of the transaction. Unlike the previous two transactions, this transaction has no revolving period which in turn allows the controlled amortisation period to commence right after the closing date.
Fitch's expected rating is based on the subordination of 20.8% available for credit loss protection, commingling risk and set-off risk. It also reflects the quality of the underlying pool of receivables (which is supported by eligibility criteria), various early amortisation trigger events to protect investors against any severe deterioration of the portfolio and insolvency risks affecting the originator or servicer. The expected rating takes into account SICCO's originating and servicing capabilities, the appointment of Hongkong and Shanghai Banking Corporation Limited (rated 'AA'/'F1+' on the international scale) as its back-up servicer, as well as the sound financial and legal structures of the transaction.
SICCO SPV 3, a special-purpose company with limited liability established under Thai law, is expected to be granted special-purpose vehicle status under the Securitisation Law. The purchased assets had a value of approximately THB3.8bn at the cut-off date on 28 February 2007.
The rating is contingent upon receipt of final documents including legal opinions and signed agreements conforming to information already received and SEC approval of the securitisation programme.
A copy of the presale report will be available on the agency's web site, www.fitchratings.com and Fitch's Asian website www.fitchratingsasia.com
Contacts: Napachak Phasukavanich, Orawan Karoonkornsakul, Vincent Milton; 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.
Media Relations: Ching-Yuen Lock, Singapore, Tel: +65 6238 7301; Sylvia McKaige, Singapore, Tel: + 65 6336 6801.
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.
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