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May 28 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has published a performance report on Eternal 6 Special Purpose Vehicle Co., Ltd.
The transaction is a securitisation of credit card receivables originated by AEON Thana Sinsap (Thailand) Public Company Limited (BBB+(tha)/Positive/F2(tha)), a consumer finance company in Thailand.
The report discusses the key rating drivers for the transaction, which include asset performance and structural features (for example, credit enhancement and rapid amortisation triggers). Since closing in May 2013, each key performance parameter has remained largely within Fitch’s base case expectations. Fitch believes political uncertainty and rising household debt in Thailand are the key risks for the asset performance of this transaction in the near future. However, Fitch’s base-case assumptions were determined based on historical data covering more than nine years, including a period of political instability in 2006. In addition, Fitch set the base-case default rate and monthly payment rate conservatively compared with the performance observed in recent years, reflecting the rising household debt. Therefore, Fitch expects the asset performance to continue to remain broadly within its base-case assumptions and will continue to monitor it closely.
Fitch’s most recent rating action on this transaction was on 11 April 2014, where the ratings of the debentures were affirmed at ‘A-sf’ with Stable Outlook.
The report is available at www.fitchratings.com or by clicking the link below.
Link to Fitch Ratings’ Report: Eternal 6 Special Purpose Vehicle Co., Ltd.