OREANDA-NEWS. Fitch Ratings expects to rate the up to \$250 million series 2015-1 notes to be issued by Jamaica Merchant Voucher Receivables Limited 'BB+(EXP)' with a Stable Rating Outlook.

National Commercial Bank Jamaica Ltd. (NCBJ) is an acquiring and issuing partner of Visa International Service Association (Visa) and MasterCard International Incorporated (MasterCard) in Jamaica. The issuance will be backed by future flows due from Visa and MasterCard related to international merchant vouchers acquired by NCBJ in Jamaica. Fitch's rating addresses timely payment of interest and principal on a quarterly basis.

KEY RATING DRIVERS

The expected rating reflects:

Originator's Strength and Systemic Importance: Fitch assigns a going concern assessment (GCA) score of 'GC1' to the bank and cash flow generating business, allowing the transaction to achieve the maximum potential uplift from the bank's local currency (LC) Issuer Default Rating (IDR). NCBJ is a systemically important top-tier bank representing more than 30% of system assets. The bank has demonstrated its ability to continue performing in high stress environments. The long-term IDRs assigned to NCBJ are in line with the sovereign due to the high influence of the operating environment on NCBJ's ratings.

Strategic and Resilient Business: NCBJ's card business contributes between 10% and 17% of the bank's annual operating profit. The bank's acquiring receivables have demonstrated growth and stability over the long term, including sovereign crises and bank difficulties. NCBJ's market leading credit card franchise supports a growing level of international Visa and MasterCard merchant vouchers.

Low Sovereign/Diversion Risk: The structure mitigates certain sovereign risks by keeping cash flows offshore until collection of periodic debt service, allowing the transaction to be rated above the sovereign country ceiling. Fitch believes diversion risk is mitigated by consent and agreements obligating Visa and MasterCard to make payments into a collection account controlled by the trustee.

Level of Future Flow Debt: Future flow debt, which includes the proposed issuance and outstanding balance of NCBJ's diversified payment rights (DPR) securitization, would represent 9.62% of total consolidated liabilities and 100% of long-term funding. This level of future flow debt acts as a limiting factor to the transaction rating.

RATING SENSITIVITIES

The rating assigned to the notes is linked to the credit quality of NCBJ and the ability of the credit card business to continue operating, as reflected by the GCA score. Although the future flow rating is sensitive to changes in the bank's LC IDR, a one-notch movement in the bank's IDR may not lead to a similar rating action on the notes. In addition, the transaction rating is sensitive to the performance of the securitized business line. Reductions in coverage levels could result in rating downgrades.

TRANSACTION SUMMARY
The transaction is backed by current and future receivables due from Visa and MasterCard for international USD-denominated merchant vouchers acquired by NCBJ in Jamaica. An international VISA or MasterCard holder creates a voucher when he or she pays for goods or services from a Jamaican-based merchant that is part of NCBJ's merchant network. The merchant presents the voucher to NCBJ and the bank pays the merchant the amount of the voucher and forwards the voucher to Visa or MasterCard for authorization and settlement in U.S. dollars. Visa and MasterCard will each sign a consent and agreement obligating them to make all payments related to the USD international merchant vouchers into an account controlled by the trustee for the benefit of the noteholders.

For more details on the Key Rating Drivers and Rating Sensitivities please refer to the pre-sale report 'Jamaica Merchant Voucher Receivables Limited' available on Fitch's website or by clicking on the link.