Fitch: APAC SF Ratings and Outlooks Stable in 4Q13

(The following statement was released by the rating agency)

HONG KONG, January 13 (Fitch) Fitch Ratings says that most of the Asia-Pacific 
structured finance rating actions in 4Q13 were affirmations, with the sole 
exception being an upgrade.

The rating upgrade was for a prime RMBS transaction in Japan. The upgrade 
reflected the growth in credit enhancement (CE) levels benefiting from the 
excess spread in the underlying transaction.  Other rating actions for Japanese 
transactions were affirmations for 18 single-borrower or multi-borrower CMBS 
tranches and 14 prime RMBS tranches. One CLN was also affirmed during the 
quarter.

Australia saw 67 affirmations from 29 transactions during 4Q13, most of which 
were from prime RMBS transactions. The satisfactory asset performance continues 
to be supported by low interest rates and a sanguine housing market. Increased 
credit enhancement in transactions also contributed to the stability of the 
ratings.

In non-Japan Asia, five prime RMBS tranches from South Korea and six credit 
tenant leased-backed CMBS tranches from Thailand were affirmed with Stable 
Outlooks during the quarter. The Korean transactions exhibited satisfactory 
asset performance and continuous credit enhancement build-up, while the CMBS 
affirmations reflected credit linkage to the Treasury Department of the Ministry 
of Finance of Thailand.

Most Long-Term ratings outstanding today have Stable Outlooks, reflecting stable 
albeit slower regional economic growth. Five ratings have Positive Outlooks and 
two have Negative Outlooks, one of which is from a Japan multi-borrower CMBS and 
one from a structured credit transaction. 

Individual rating action commentaries relating to specific rating actions can be 
found on Fitch's website at www.fitchratings.com. 

Contacts:

Hilary Tan

Director

+852 2263 9904

Fitch (Hong Kong) Limited

2801, Tower Two, Lippo Centre

89 Queensway, Hong Kong 

Alison Ho

Senior Director

+852 2263 9937

Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: 
iselle.gonzalez@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, 
Email: wailun.wan@fitchratings.com.

Additional information is available at www.fitchratings.com.

Related Research:

"Fitch: Japanese SF Mostly Stable; One Upgrade in 4Q13" dated 14 January 2014

"Fitch: 67 Affirmations of Australian & New Zealand SF in 4Q13" dated 14 January 
2014

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