OREANDA-NEWS. Fitch Ratings has assigned 'BBB-' ratings to the 2015 loans issued by Salvadoreno DPR Funding, Ltd. The Rating Outlook is Stable. A full list of ratings follows at the end of this press release.

The reactivated securitization program is backed by existing and future U.S. dollar-denominated diversified payment rights (DPRs) originated by Banco Davivienda Salvadoreno, S.A. (Davivienda Sal). DPRs include all electronic remittances to third-party beneficiaries and mostly relate to export payments and family remittances. The majority of DPRs are processed by designated depositary banks (DDBs) that have signed acknowledgment agreements (AAs), irrevocably obligating the DDBs to send DPRs to an offshore account controlled by the trustee.

Fitch's ratings address timely payment of interest and principal on a quarterly basis.

KEY RATING DRIVERS

Originator Credit Quality: Fitch rates Davivienda Sal's Issuer Default Rating (IDR) 'BB'/Stable Outlook, reflecting the likelihood of support from its parent, Colombian bank Banco Davivienda S.A. ('BBB-'/ Positive Outlook). Davivienda Sal's Viability Rating (VR) of 'b+' is supported by the bank's domestic franchise and market share, and is limited by El Salvador's sovereign rating ('B+'/Stable Outlook).

Going Concern Assessment Score: Fitch assigns a going concern assessment (GCA) score of 'GC2' to Davivienda Sal, reflecting the bank's moderate systemic importance and the strong likelihood of parent support. The transaction is rated two notches above the bank's IDR and four notches above the bank's VR.

Moderate Program Size: The proposed future flow issuances represent approximately 8.8% of Davivienda Sal's total liabilities and 35.3% of long-term debt. While Fitch considers the program size small enough to allow the transaction to be rated up to the maximum uplift indicated by the GCA score, an increase in future flow debt could impact the transaction ratings.

Moderate Debt Service Coverage: Fitch's expected quarterly debt service coverage ratios (DSCRs), which consider average quarterly rolling DDB collections for 2014 and the maximum quarterly debt service for the life of the transaction, are approximately 37x the maximum quarterly debt service payment.

High Beneficiary Concentrations: The program is exposed to large beneficiary concentrations. Fitch tested the sustainability of debt service coverage and believes the transaction can withstand stress related to the potential loss of key beneficiaries.

RATING SENSITIVITIES
The credit strength of the transaction is linked to the performance of Davivienda Sal. The future flow ratings are sensitive to changes in the credit quality of Davivienda Sal, the ability of the DPR business line to continue operating (as reflected by the GCA score) and changes in the ratings assigned to El Salvador. A downgrade of the bank would trigger a downgrade to the future flow ratings.

The transaction ratings are also sensitive to the performance of the DPR business line. This includes the ability of the DPR program to withstand stresses related to concentration risks and HSBC as a former DDB. The expected quarterly minimum DSCR is estimated to be 37x and, therefore, should be able to withstand a significant decline in cash flows in the absence of additional issuance.

DUE DILIGENCE USAGE
No third party due diligence was provided to or reviewed by Fitch in relation to this rating action.

Fitch has assigned the following ratings:

--US$70 million Series 2015-1 loan 'BBB-'; Outlook Stable;
--US$75 million Series 2015-2 loan 'BBB-'; Outlook Stable;
--US$30 million Series 2015-3 loan 'BBB-'; Outlook Stable.