Bangkok--20 Apr--Fitch Ratings
Fitch Ratings (Thailand) Limited has today assigned a final National Long-term Rating of ‘AAA(tha)’ to SICCO Special Purpose Vehicle 3 Company Limited’s (SICCO SPV 3) upcoming THB3.0 billion issue of debentures (“the debentures”). The final 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 after closing in April 2007.
Fitch’s 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 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 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 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.
A copy of the new 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; +662 655 4755;