Fitch Affirms HomePlan Financial Solutions (Pty) Limited
Fitch Ratings-London-25 May 2010: Fitch Ratings has affirmed HomePlan Financial Solutions (Pty) Limited's ZAR675m floating-rate notes at 'AAA(zaf)', with Stable Outlook. A Loss Severity Rating of LS-1 has been assigned. The affirmation reflects the stable performance of the transaction to date.
HomePlan Financial Solutions (Pty) Limited is a securitisation of pension-backed home loan receivables originated in South Africa by Alexander Forbes Group (Pty) Limited and Absa Bank Limited ('AAA(zaf)'/Stable/'F1+(zaf)').
Since the transaction closed in August 2005, the transaction has not breached any of the performance triggers in the transaction, including the weighted average (WA) loan-to-value (LTV) and interest ratios of the portfolio as well as excess spread levels. As of April 2010, the notes remained fully outstanding since there has been no early amortisation event and note redemption. New loans totalling ZAR441m have been purchased to date while further advances on existing facilities amount to ZAR509m.
The aforementioned amortisation mechanism will also apply if the notes are not redeemed at the scheduled maturity date in July 2010. The ongoing revolving period (allowing further advances and the purchase of new loans) will come to an end. At the same time, the note margin will be increased by 75 basis points, with interest payable prior to principal. It should be noted that Fitch's rating addresses timely interest payments and ultimate redemption at final legal maturity in July 2045, meaning that the ratings will not come under review simply as a result of the notes not being redeemed in July 2010.
The weighted average LTV has ranged from 23% to 42% to date and was in April 2010 reported at 23.7%. No reserve balance was required in April 2010 as there were no deteriorated assets. Loans totalling ZAR119,000 have been written off since closing, equating to only 0.02% of the original portfolio balance.
Applicable criteria, "Criteria for Structured Finance Loss Severity Ratings", dated 17 February 2009; and "Global Structured Finance Rating Criteria", dated 30 September 2009, are available on www.fitchratings.com. Quarterly surveillance information and research for this transaction is also available at www.fitchratings.com
Further information on Fitch's EMEA structured finance offering can be found in "EMEA Structured Finance Snapshot", which is available at www.fitchratings.com. The Snapshot consolidates and highlights the key research and commentary produced by the agency's EMEA structured finance group and includes previously unpublished Fitch data and multimedia content that will be updated each quarter.
Contacts: Mario Schmidt, London, Tel: +44 (0)20 7417 4232 begin_of_the_skype_highlighting +44 (0)20 7417 4232 end_of_the_skype_highlighting; Andy Brewer, +44 (0)20 7417 3481 begin_of_the_skype_highlighting +44 (0)20 7417 3481 end_of_the_skype_highlighting.
Media Relations: Julian Dennison, London, Tel: +44 020 7682 7480 begin_of_the_skype_highlighting +44 020 7682 7480 end_of_the_skype_highlighting, Email: julian.dennison@fitchratings.com.
Additional information is available on www.fitchratings.com.
Related Research:
Criteria for Structured Finance Loss Severity Ratings
Global Structured Finance Rating Criteria
EMEA Structured Finance Snapshot - April 2010 (Multimedia)
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
101 Finsbury Pavement, London, EC2A 1RS