RPT-Fitch: Japanese SF Tranches Mostly Stable in 2Q14; 2 Upgrades

Tue Jul 8, 2014 3:11am EDT

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July 8 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings says publicly rated structured finance (SF) and structured credit (SC) transactions monitored by its Japanese SF team remained mostly stable in 2Q14, with 11 rating affirmations, two upgrades and three downgrades..

The two upgrades were mezzanine BIs 2 and 3 of Shinsei TB Fund 7976001, an RMBS transaction. The rating actions reflected growth in credit enhancement (CE) levels due to principal redemptions of the senior classes and Fitch's expectation that asset performance will continue to be stable.

The 11 affirmations reflected Fitch's view that available CE is sufficient to support the current ratings. The affirmations were for seven tranches from three RMBS transactions, two ABCP programmes, one multi-borrower CMBS tranche and a Thai credit card ABS tranche.

The class C TBIs of JLOC XXX Trust and class 1 and 2 mezzanine TBIs of JLOC XXX Satellite Trust, were downgraded to 'Dsf' from 'Csf' and simultaneously withdrawn. The rating actions on these CMBS transactions followed the principal loss on the TBIs, resulting from completion of the workout on a defaulted underlying loan.

The Outlooks for Japanese SF ratings remain mostly Stable, with a limited number of exceptions: Negative Outlooks on one SC and one CMBS transaction and Positive Outlooks on four tranches of three CMBS transactions as of end-2Q14. Individual rating action commentaries relating to specific rating actions can be found on Fitch's website at www.fitchratings.com.

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