Fitch Ratings has affirmed the ratings of Kocbank Diversified Payment Rights Securitization $42.9 million asset backed floating rate Class A notes at BBB.
The Class A notes were issued in 1999 and are due in March 2004. The proceeds of the notes were used to purchase diversified payment rights originated by Kocbank. Payment rights are defined as receivables sent via the Swift MT100 and Swift MT200 or Swift MT202 payments systems and include cash against goods, workers' remittances, cash against documents and other payments made by individuals and businesses to Kocbank.
On October 2, 2003, Fitch upgraded the Long-Term rating of
Kocbank to B from B- with a positive outlook. Fitch has carried out a review of the transaction and its performance to date. The analysis was based on the level of monthly collections or flows into the transaction and debt service coverage ratios (DSCR), both monthly and quarterly. Monthly collections on the transactions have been positive and have increased over the life of the transaction.
As at October 2003, the monthly collections stood at $985 million. There was a slight dip in collections during the first quarter of 2003 as a result of a very short working month in February and hostilities in the Middle East region. However, levels have returned to normal following the end of the conflict in that region.
The DSCR is the amount of cash flows generated by the diversified payment rights over a given period of time divided by the largest single debt service payment on the loan in the lifetime of the deal. The monthly DSCR has risen continually and currently stands at 134x. The quarterly DSCR has also risen in line with the monthly DSCR and stands at 99x. This is due to the strong cash flows in the transaction since it was launched and the reducing principal outstanding balance. This trend is expected to continue in the near term. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
