TEXT-Fitch on Colombian commercial real estate backed equity securitizations

Mon Feb 4, 2013 1:42pm EST

Feb 4 - Fitch Ratings has published today its rating criteria for assessing
risk in Colombian commercial real estate pools that are used as collateral for
equity securitizations.

This report sets out the Colombia-specific issues addressed in Fitch's analysis
of equity securities backed by Colombian Commercial Real Estate. The published
criteria assumptions will be utilized in rating new and existing Colombian
equity securitizations backed by these assets, on the national scale, which are
described in Book 22 of Decree 2555 of 2010. The newly published criteria
assumptions are not expected to result in rating actions on existing
transactions. Fitch's current portfolio is exclusively rated on the national
scale identified by (col) ratings suffix.

Colombian Commercial Real Estate Backed Equity Securitizations do not commit to
the payment of interest or principal. The investors of these transactions are
entitled to receive periodically all the net flows derived from a) leases of
these properties; and b) financial yields generated from liquidity inside SPV.
Additionally, if an asset inside the SPV is sold, investors receive net proceeds
of the sale, exposing them to market value appreciation or depreciation of the
properties. Ratings address the relative ability to preserve principal and
provide a stable return on a scale that is unique to the asset class.

In particular, Fitch's ratings for these issuances are based on an evaluation of
several factors, including legal structure; real estate manager quality; asset
quality; and pool diversification. All of these aspects are the principal
elements that shape the profile of the transaction and, thereby, the
determination of a rating opinion on the transaction. The ratings assigned under
this criteria are preceded by the letter i.

The criteria report should be viewed together with the master criteria report
titled 'Global Structured Finance Rating Criteria', dated June 2012, for a
comprehensive understanding of Fitch's approach to rating Colombian Commercial
Real Estate Backed Equity Securitizations.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:
-- Rating Colombian Commercial Real Estate Backed Equity Securitizations (Feb.
4, 2013).

Applicable Criteria and Related Research: Colombian Commercial Real Estate
Backed Equity Rating Securitizations