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Fitch Ratings-Taipei/Hong Kong/Singapore-06 August 2009: Fitch Ratings has today affirmed the 'F1(twn)' National Short-term rating on the New Taiwanese Dollar (NTD) 1.48bn asset-backed Commercial Paper (CP), issued by Taiwan Life 2006-1 Securitisation Special Purpose Trust ("the SPT").
The SPT was established in 2006 to issue NTD6.48bn CP via an asset-backed CP programme and NTD5.6bn of Equity Term Notes. At closing, the NTD12.08bn static portfolio comprised 22 NTD-denominated Taiwanese corporate and financial institution bonds and debentures.
The principal driver of the rating affirmation is the reduction in outstanding CP. Twelve assets have now fully amortised and thus the remaining portfolio notional has been reduced to NTD7.08bn, per the June 2009 Trustee Report, which has reduced the outstanding notional of the CP to NTD1.48bn from NTD6.48bn at closing.
The rating affirmation is also based on the largely stable credit quality of the remaining portfolio, coupled with the adequate level of cash reserves (NTD216m). Liquidity during the entire programme life is supported by an unconditional purchase agreement from China Bills Finance Corporation (Long-term and Short-term foreign currency Issuer Default Ratings 'BBB'/'F3', National Long-term and Short-term ratings 'A+(twn)'/'F1(twn)'). Whilst this mechanism can mitigate some of the re-financing risks of the programme, the CP is as a result, credit-linked to the underwriter. The program is scheduled to terminate in December 2014.
Contacts: Jackie Lee, Taipei, +8862 8175 7613/
jackie.lee@fitchratings.com; Kate Lin, Hong Kong, +852 2263 9912/
kate.lin@fitchratings.com.
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(twn)' for National ratings in Taiwan. Specific letter grades are not therefore internationally comparable.
Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215,
Email:
shivani.sundralingam@fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
