Fitch Assigns Fintech Receivables 2 (Proprietary) Limited - 2009 Refinance Final National Ratings
Fitch Ratings-London/Johannesburg-17 August 2009: Fitch Ratings has today assigned final National ratings and Loss Severity (LS) ratings to the term notes issued by Fintech Receivables 2 (Pty) Limited (Fintech 2), as listed below.
ZAR232.55m class A Series A1C floating rated notes: 'AAA(zaf)'; Outlook Stable; Loss Severity Rating LS-1
ZAR70.84m class E Series D1C floating rated notes: 'BB+(zaf)'; Outlook Stable; Loss Severity Rating LS-3
Fitch has simultaneously affirmed the National Long-term ratings for the following securities previously issued by Fintech 2:
ZAR50.0m class A2A affirmed at 'AAA(zaf)'; Outlook Stable; Loss Severity Rating LS-1
ZAR306.3m class A2B affirmed at 'AAA(zaf)'; Outlook Stable; Loss Severity Rating LS-1
ZAR31.4m class B2B affirmed at 'AA(zaf)'; Outlook Stable; Loss Severity Rating LS-4
ZAR44.1m class C2B affirmed at 'A(zaf)'; Outlook Stable; Loss Severity Rating LS-4
ZAR31.8m class D2B affirmed at 'BBB(zaf)'; Outlook Stable; Loss Severity Rating LS-4
ZAR14.0m class E3B affirmed at 'BB+(zaf)'; Outlook Stable; Loss Severity rating LS-3
The new notes were issued to refinance the following notes that have reached their scheduled maturity dates:
ZAR300.0m class A1B floating rate notes: 'Paid in Full'
ZAR19.9m class D1B floating rate notes: 'Paid in Full'
The transaction is a securitisation of equipment leases originated by Fintech Underwriting (Proprietary) Limited (Fintech Underwriting), which is wholly owned by Fintech (Proprietary) Limited (Fintech).
The transaction is an existing pool of assets that was included in a ZAR2bn multi-seller asset-backed note programme established in August 2008 with the issuance of the first series of notes. Under the programme, the issuer, from time to time, may issue securities with maturities of less than 365 days (CP) and longer-dated maturities (term notes). No CP has been issued to date.
Credit enhancement for the class A notes equal 32.45% of the ZAR848.4m collateral and is provided by subordination of the class B, C, D and E notes, subordinated loan and the available Arrears Reserve Fund. The issuer can, after the inception date, issue CP, which will rank senior to the class A notes. The issuance of CP is subject to the issuer meeting certain issuance conditions prior to funding.
The final ratings on the term notes address the payment of interest on the notes according to the terms and conditions of the transaction documents, subject to an interest deferral trigger on the class B, C, D and E notes, as well as the repayment of principal by legal final maturity for each note. Should a deferral trigger be hit on the class B, C, D or E notes, interest may not be received for a certain period, but will, in Fitch's judgement, be received by legal final maturity. No unpaid interest will accrue on the deferred interest.
Rating Outlooks for European Structured Finance tranches provide forward-looking information to the market. An Outlook indicates the likely direction of any rating change over a one- to two-year period. For further information on Rating Outlooks, please refer to the 1 June 2007 commentary entitled "Scanning the Horizon - Rating Outlooks in European Structured Finance", which is also available at www.fitchratings.com.
For topical commentary on the European structured finance market, along with global capital markets coverage, please see www.fitchratings.com/capitalmarkets.
Contacts: David Kubayi, Johannesburg, Tel: +27 11 380 0905; Alfons Ideler, +27 11 380 0901; Joshua Cohen, +27 11 380 0907.
Media Relations: Kevin Duignan, New York, Tel: +1 212-908-0630, Email: kevin.duignan@fitchratings.com; Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email: peter.fitzpatrick@fitchratings.com; Hannah Warrington, London, Tel: +44 (0) 207 417 6298, Email: hannah.warrington@fitchratings.com.
Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(zaf)' for National ratings in South Africa. Specific letter grades are not therefore internationally comparable.
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