TRIS Rating places CreditAlert with a “positive” implication on the “AA-(sf)” rating of the guaranteed debentures issued by SPV-SMC (8) Co., Ltd. (the Issuer or the SPV). The debentures are unconditionally and irrevocably guaranteed by the Secondary Mortgage Corporation (SMC or the guarantor).
The rating action follows the announcement of Abolition of Secondary Mortgage Corporation Act B.E. 2563 in the Royal Gazette on 23 September 2020. The Act has the legal effect of dissolving SMC and transferring SMC’s assets and liabilities to the Government Housing Bank (GHB), and that GHB will assume the roles and responsibilities of SMC as of 24 September 2020. Consequentially, GHB will replace SMC as the guarantor of the debentures. The “positive” implication reflects a potential credit rating uplift as the rating will reflect the credit profile of GHB instead of SMC.
We will resolve the CreditAlert once we have completed the evaluation of GHB’s credit profile.
The issuer has informed TRIS Rating that the issuer has followed the Securities and Exchange Commission (SEC) in disclosing all relevant information about the structured finance instruments that are subject to this rating report to the public.
- Guidelines on Securitization Rating Methodology, 31 May 2010
SPV-SMC (8) Co., Ltd. (SPV-SMC (8))
MBSE20NA: THB4,463.83 million amortizing guaranteed debentures due 2020 AA-(sf)
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