Bangkok--26 Feb--Moody's Investors
Moody's Investors Service says in a new report that there are no rating implications for outstanding Korean ABS transactions in view of the recent performance of their underlying receivables.
"The performance of auto loan receivables has been stable, while credit card receivables have exhibited a stable principal payment rate and a low delinquency ratio and charge-off rate," says Marie Lam, a Moody's VP/Senior Credit Officer.
Lam was speaking on the release of the new report, a Moody's update which she authored on the Korean ABS market in 4Q2009.
"While credit card receivables' performance has been stable, their gross yield decreased to around 11% from 12% in mid-2009. However, this is not expected to affect the transactions as the defaulted amount is low and there is still a healthy excess spread," says Lam.
Korea's economy grew 0.2% in 2009, and unemployment rate was 5% in January 2010 as more people started to look for jobs again. The report additionally notes that household debt is rising while household income is falling, meaning obligors' ability to pay may be affected if their debts continue to rise.
In addition to providing commentary on trends in the Korean ABS market, the report contains detailed performance overviews of individual ABS deals rated by Moody's.
The report, entitled, "Korean ABS 4Q2009 Performance Review," is now available at www.moodys.com.
Moody's also publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck .
Hong Kong
Marie Lam
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077
Hong Kong
Jerome Cheng
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077