Bangkok--22 Apr--Fitch Ratings Fitch Ratings (Thailand) Limited has today affirmed Siam Panich SPV 1 Company Limited’s (the issuer) National ‘AAA(tha)’ ratings on its THB2.5 billion Tranche A debentures No.1/2006 and THB2.5bn Tranche B debentures No. 2/2006, both issued in March 2006. The ratings address the timely payment of interest and ultimate repayment of principal by the legal final maturity in March 2012 for the Tranche A debentures, and March 2014 for the Tranche B debentures. Despite the upward trend in delinquency over the past six months, the collateral continues to perform within Fitch’s expectations with the overcollateralisation ratio maintained at 1.32x, the level provided at closing. The ratings affirmations also take into account the agency’s view that the change in Siam Commercial Leasing Public Company Limited’s (SCBL) business model should not have any material impact on the transaction. SCBL, which acts as an originator and servicer of the transaction, recently announced its plan to cease its hire purchase lending to retail borrowers, and shift its focus to servicing business. While SCBL will still undertake its hire purchase lending to corporate borrowers, its parent — Siam Commercial Bank (SCB) — will directly book the group’s retail hire purchase loans. The transaction, which is still in the revolving period of Tranche B debentures, will continue to purchase new receivables from SCBL’s remaining retail hire purchase portfolio. Given the existing size of the portfolio, SCBL is expected to be able to accommodate the sales of new receivables to the transaction until the start of the controlled amortisation period in April 2009. On the servicing function, SCBL now provides the servicing function for more than 60 days delinquent borrowers to its own remaining portfolio and SCB’s portfolio, while SCB is responsible for servicing SCBL’s and SCB’s borrowers in early delinquent buckets of up to 60 days past due. Fitch believes that both SCBL and SCB have adequate collection expertise and systems in managing such servicing allocation. This transaction is the first securitisation transaction of auto hire purchase receivables originated by SCBL. On the closing date, SCBL sold eligible receivables to the issuer; the purchase of receivables was 75.6% funded by the issuance of the bonds and the payment of the remainder 24.4% was deferred as credit enhancement of the transaction. Other risk mitigations that support the ratings of the transaction include reserve fund, eligibility criteria and various performance triggers for early amortisation of the transaction. The receivables are serviced by SCBL and SCB, while the Hongkong and Shanghai Banking Corporation Limited (‘AA’/ ‘F1+’) is the back-up servicer. A copy of the surveillance report will be available shortly on the agency’s website, www.fitchratings.com and Fitch’s Asian website www.fitchratingsasia.com. Contacts: Napachak Phasukavanich, Orawan Karoonkornsakul, Vincent Milton, Bangkok, Tel: +662 655 4755.