OREANDA-NEWS. Fitch Ratings has affirmed the asset-backed debentures issued by Eternal 6 Special Purpose Vehicle Co., Ltd. The transaction is a securitisation of credit card receivables originated in Thailand by AEON Thana Sinsap (Thailand) Public Company Limited (BBB+(tha)/Positive/F2(tha)). The rating action is listed below.

THB2.96bn* fixed interest rate asset-backed debentures affirmed at 'A-sf'; Outlook Stable
*as of 7 April 2015

KEY RATING DRIVERS

The affirmation reflects Fitch's view that the available credit enhancement (CE) level is sufficient to support the current ratings and that the key performance parameters will continue to remain within the agency's base case expectations.

The CE level has been stable since the transaction closed in May 2013, as the transaction is in the revolving period and the asset yields have been sufficient to cover all defaulted receivables.

Fitch focuses on yields, monthly payment rate (MPR) and delinquent receivables ratios as key performance variables in assessing asset performance of the underlying collateral. Each of the variables has been within the agency's initial expectation.

As the actual performances of the MPR and delinquent receivables ratios have some buffer against Fitch's base case, the transaction can withstand some stresses in those performance parameters. This underpins the Stable Outlook.

RATING SENSITIVITIES

Unexpected deterioration in pool performance such as a material increase in the default rate or a decline in MPR may lead to a negative rating action. Based on the recent three-month average of the key performance parameters, the default rate would need to increase by about 2x the current level before a downgrade by stress on the default rate alone can occur. Similarly, MPR would need to decline by about 30% to see a downgrade by the stress on MPR alone. For combinations of stresses on the default rate and MPR, a downgrade may occur under a mild stress on default rate (for example, a 25% increase) with a moderate stress on MPR (for example, a 25% reduction).

In addition, the ratings of the debentures may be affected by any changes in the Long-Term Local Currency Issuer Default Rating of Thailand (A-/Stable).

Initial Key Rating Drivers and Rating Sensitivities are further described in the New Issue report published on 20 May 2013. A comparison of the transaction's representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the reports and/or links given under Related Research below.