Bangkok--9 Nov--Fitch Ratings (Thailand) Fitch Ratings (Thailand) Limited has today assigned a final National rating of 'AAA(tha)' to DAD SPV Company Limited's (DAD SPV) new bonds of THB5.5 billion (due in 2025) to be issued this month. Fitch has also affirmed the 'AAA(tha)' ratings of six series of DAD SPV's outstanding bonds totaling THB18.5bn, which were issued in 2005 and 2006. The securitisation programme permits bond issuance of up to THB24.0bn within three years. The transaction is the first securitisation programme initiated by the Thai Government and is backed by the 30-year lease and fee payments to be received from the new government office centre at Chaeng Wattana. Dhanarak Asset Development Company Limited (DAD), an asset development company wholly-owned by the Ministry of Finance (MoF), is responsible for developing the project. The transaction closed in November 2005, with DAD SPV purchasing the rights to receive cash flows from DAD under three contracts - namely the building space lease, service and furniture procurement agreements. The purchase price was THB40bn, which was partly funded by the net proceeds of THB7.8bn, after deducting reserves and expenses of the first bond issuance in 2005. The remaining THB32.2bn was funded by the issuance of a subordinated promissory note to DAD, which will be repaid from the proceeds of the bond issuance in subsequent years, as well as from excess cash from lease payments. This subordinated promissory note was partly repaid by the THB7.1bn net proceeds of the second bond issuance in 2006. The subordinated promissory note ranks after bondholders in the cash waterfall structure, effectively serving as the credit enhancement. The ratings reflect available committed stable cash flows from the sole underlying obligor, the Treasury Department of the MoF, and the full upfront reserves to meet interest and expenses payable during the construction period, as well as a principal accumulation reserve. The ratings address timely payment of note interest and ultimate repayment of principal by final maturity. The potential refinancing risk of bonds due in 2025 is partly mitigated by a principal accumulation reserve, which should help reduce the amount of bonds to be refinanced in 2025. This, together with the remaining cash flow from year 2025 onwards, should result in positive debt service coverage up to Fitch's refinance rate assumption of 15% which is based on the historical high of government reference yield. DAD SPV, a special-purpose company with limited liability established under Thai law, was granted special-purpose vehicle status, under the Securitisation Law, from the Securities and Exchange Commission. A copy of the new issue report will be available on the agency's websites, www.fitchratings.com and www.fitchratingsasia.com. Contacts: Orawan Karoonkornsakul, Napachak Phasukavanich, Vincent Milton, Bangkok, Tel: +662 655 4755. Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6336 0095.