CHICAGO--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on the notes issued by Jamaica Diversified Payment Rights Company:
--Series 2006-1 Notes due 2013 affirmed at 'BB'; Outlook Stable;
--Series 2007-1 Notes due 2015 affirmed at 'BB'; Outlook Stable.
The transaction is a securitization of existing and future U.S. dollar-denominated diversified payment rights (DPRs) originated by National Commercial Bank Jamaica Ltd.'s (NCBJ). DPRs refer to electronic payment orders intended for payment to third party beneficiaries via NCBJ, related to international trade financed by NCBJ, export remittances, workers remittances, and foreign direct investment. Upon generation of the payment orders, the trust will have rights to the DPRs through accounts maintained with designated depositary banks (DDBs). On average, over 97% of all collections currently come via DDB transactions.
These structures mitigate certain sovereign- and bank-related risks associated with Jamaica and NCBJ, allowing the rating of the securitization to be above Jamaica's country ceiling of 'B' and NCBJ's foreign currency (FC) and local currency (LC) issuer default ratings (IDRs) of 'B-'.
In March of 2012 Fitch affirmed NCBJ's FC and LC IDRs at 'B-' with a Stable Outlook. A strong domestic franchise, solid profitability, and adequate capitalization support the current ratings of NCBJ. Nevertheless, NCBJ's ratings remain constrained by the sovereign's weak credit profile given high exposure to the Jamaican public sector, lending concentrations, as well as a challenging operating environment.
The rating actions on the notes reflect the recent affirmation of NCBJ's FC and LC IDRs, the stability of the bank's DPR flows and the relatively high coverage levels. Quarterly coverage levels for the program during 2011 averaged approximately 72 times (x) maximum quarterly debt service. As of February 2012, current monthly debt service coverage ratio (DSCR) is 63.1x and quarterly DSCR is 76.07x. The proportion of collections from DDB remains considerably over the 70% trigger and all other early amortization trigger tests are passed comfortably.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Future Flow Securitization Rating Criteria' (June 24, 2011);
--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);
--'Jamaica' (Feb. 10, 2012);
--'National Commercial Bank of Jamaica Limited (March 28, 2011).
Applicable Criteria and Related Research:
Future Flow Securitization Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=634949
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Jamaica
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=670630
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