OREANDA-NEWS. August 17, 2015.  Fitch Ratings affirms the notes issued by Industrial DPR Funding Ltd at 'BBB'. A full list of rating actions follows at the end of this ratings action commentary.

The notes are backed by existing and future U.S. dollar-denominated diversified payment rights (DPRs) originated by Banco Industrial S.A. (BI). DPRs include MT100 payment orders originated from export payments, capital transfers and family remittances. The majority of DPRs are processed by designated payment banks (DPBs) that have signed acknowledgement agreements (AAs). The program was established in 2005.

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

KEY RATING DRIVERS
Credit Quality of BI: On May 15, 2015, Fitch affirmed BI's long-term Issuer Default Ratings (IDRs) at 'BB' and its Viability Rating at 'bb'. The Rating Outlook remains Stable. Fitch views BI's DPR business line and performance risk consistence with a going concern assessment score of 'GC1' based on the bank's position as the largest bank in the Guatemalan financial system.

Strong Program Performance: DPB flows supported an average maximum monthly debt service coverage ratio (DSCR) of 67.6x during the 12 months through June 2015 (58.0x expected at closing in December 2013). Fitch's maximum monthly DSCR considers DPB flows and the maximum periodic debt service over the life of the program.

Level of Future Flow Debt: The outstanding balance of the program is \\$592.4 million, which represents about 6.8% of BI's unconsolidated liabilities and 5.8% of BI's consolidated liabilities. Fitch considers this level of future flow debt small enough to allow the current rating uplift from the bank's local currency IDR.

Sovereign Stability: On June 19, 2015, Fitch affirmed Guatemala's long-term IDRs at 'BB'/Outlook Stable and its country ceiling at 'BB+'.

RATING SENSITIVITIES
The transaction is sensitive to changes in the credit quality of BI, the performance of the DPR business line, a significant increase in the size of the DPR program as a percentage of the bank's total liabilities, and changes in the sovereign environment.

Although coverage levels are also a key input, the DSCRs have been consistently high, and therefore the transaction should be able to withstand a significant decline in cash flows without affecting the ratings. Nevertheless, a change in any of these variables will be analyzed in a rating committee to assess the possible impact on the transaction's rating.

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

Fitch has affirmed the following ratings:

--\\$50 million series 2011-1 due 2018 at 'BBB'; Outlook Stable;
--\\$40 million series 2011-2 due 2018 at 'BBB'; Outlook Stable;
--\\$60 million series 2011-3 due 2021 at 'BBB'; Outlook Stable;
--\\$30 million series 2011-4 due 2021 at 'BBB'; Outlook Stable;
--\\$20 million series 2013-1 due 2018 at 'BBB'; Outlook Stable;
--\\$30 million series 2013-2 due 2023 at 'BBB'; Outlook Stable;
--\\$250 million series 2013-3 due 2025 at 'BBB'; Outlook Stable;
--\\$150 million series 2013-4 due 2023 at 'BBB'; Outlook Stable.