CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed Banistmo Credit Card Receivables Master Trust's series 2004 notes at 'A'. The Rating Outlook has been revised to Positive from Stable.
The notes represent senior undivided interest in the Trust's assets and are backed by future and existing dollar-denominated credit card receivables from Visa and MasterCard. Following the merger of Primer Banco del Istmo (Banistmo) and HSBC Bank Panama (HPBA) in 2009, all of the receivables generated by the processing of merchant vouchers by HPBA, including merchant vouchers generated from HPBA's pre merger merchant relationships were transferred to the trust. As a result, monthly flows increased by an average of 36% beginning in October 2009 when the flows were transferred.
The 2004 series is scheduled to pay down in December of 2011. Quarterly coverage levels for the program during 2010 averaged approximately 18 times (x) maximum quarterly debt service. Quarterly debt service coverage at February 2011 is 20.1x. The Positive Outlook reflects actions taken regarding both the sovereign and the bank, both of which were upgraded during 2010 with a Positive Outlook.
The rating reflects the structural mitigants to several sovereign and bank risks associated with HPBA, allowing the rating of the securitization to reach 'A'. The rating also reflects the strength of the bank and coverage levels and the legal structure of the transaction.
Fitch has taken the following rating actions:
Banistmo Credit Card Receivables Master Trust
--Series 2004 affirmed at 'A'; Outlook revised to Positive from Stable.
HBPA is 100% owned by HSBC. Its operations are highly integrated within HSBC's regional franchise where it is considered a key subsidiary. HPBA is currently the largest bank in Panama holding approximately 17% of the system's assets as of June 2010. Fitch currently rates HBPA at 'A-', Outlook Positive.
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'Future Flow Securitization Rating Criteria' (March 3, 2010);
--'Global Structured Finance Rating Criteria' (Aug. 13, 2010);
--'Panama' (April 12, 2010);
--'HSBC Bank (Panama) y Subsidiarias' (Jan. 7, 2011).
Applicable Criteria and Related Research:
HSBC Bank (Panama) y Subsidiarias
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=596265
Panama
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=510565
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
Future Flow Securitization Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=502672
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