Bangkok--11 Nov--Fitch Ratings
Fitch Ratings has today commented that the asset performance of most Fitch-rated consumer ABS transactions within non-Japan Asia has deteriorated since the start of 2008, amid the global economic downturn. The asset performance for transactions in South Korea and Singapore stabilised in Q209 and Q309, while it was relatively weaker for Thai transactions in the same period. The rating Outlooks are Stable for most consumer ABS transactions in the region. "Although the asset performance of consumer ABS in the region has deteriorated compared to H108, most performance ratios are still within Fitch's base case assumptions, and well within the early amortisation triggers," said Alex Choi, Associate Director in Fitch's non-Japan Asia Structured Finance team. "Only four of 21 tranches in this sector have been assigned Negative Outlooks, and the agency does not expect further significant asset deterioration in this sector as the region's economies have shown signs of improvement in recent months," added Mr. Choi.
Delinquency and default ratios for most Fitch-rated credit card securitisations backed by South Korean assets, together with net yield, have deteriorated as a result of the global economic downturn. However, the trend saw a reversal in Q209. For the Fitch-rated auto loan securitisation, the performance has been satisfactory, with low delinquency and default ratios since closing.
In Singapore, the delinquency ratio of the Fitch-rated credit card securitisation increased rapidly from early 2008, but has been stabilising since May 2009. The default ratio also rose quickly in H208, although it stabilised in Q309. Excess spread reached a steady level during the past three months, after a period of decline from January 2009 due to increases in default receivables.
In Thailand, Fitch-rated credit card and auto-loan securitisations have shown weak asset performance due to prolonged weak economic conditions, as well as political instability. However, the performance of the more seasoned credit card securitisations appears to have stabilised, whereas the asset performance of auto loan ABS is still deteriorating. Nevertheless, the cumulative default rate of auto loan ABS remains within Fitch's base case assumptions and the credit enhancement levels continue to be at the level available at closing.
The report, entitled "Non-Japan Asia Consumer ABS Performance Update 2009", is available on the agency's website, www.fitchresearch.com. It provides an analysis of performance trends of the 14 Fitch-rated consumer ABS transactions currently under surveillance in the region. The report also shows detailed information and performance charts for the outstanding transactions in South Korea, Singapore and Thailand.
Applicable Criteria available on Fitch's website at www.fitchratings.com: "Global Structured Finance Rating Criteria", dated 30 September 2009.
Contacts: Alex Choi, Hong Kong, +852 2263 9936; Orawan Karoonkornsakul, Bangkok, +662 655 4766; Alison Ho, +852 2263 9937; Helen Wong, +852 2263 9934.
Media Relations: Karen Cho, Hong Kong, Tel: +852 2263 9935, Email:
[email protected]; Shivani Sundralingam, Singapore, Tel: + 65 6796 7215, Email:
[email protected].