Johannesburg, 19 February 2014 — Global Credit Rating Co. (‘GCR’) has affirmed the final, public long term credit ratings accorded to the following notes (collectively the ‘Notes’) issued by Fintech Receivables 2 (RF) Limited (‘FR2’ or the ‘Transaction’) on 15 August 2013.
ZAR 519m, Class A floating rate notes, stock code FR2A4A, due 15 September 2023:.……….‘AAA(ZA)(sf)’, Outlook Stable.
ZAR 54m, Class B floating rate notes, stock code FR2A4B, due 15 September 2023:…………….‘AA(ZA)(sf)’, Outlook Stable.
ZAR 49m, Class C floating rate notes, stock code FR2A4C, due 15 September 2023:………….…..‘A(ZA)(sf)’, Outlook Stable.
ZAR 43m, Class D floating rate notes, stock code FR2A4D, due 15 September 2023:………….‘BBB(ZA)(sf)’, Outlook Stable.
FR2 is a public securitisation of equipment leases originated by Fintech Underwriting (Pty) Limited (‘FUN’), a wholly-owned subsidiary of Fintech Propriety Limited (‘Fintech’). The Notes were issued on 15 August 2013 as indicated above. In addition, a subordinated loan of R56.5m was provided to FR2 by Fintech. The proceeds of the notes issued and the subordinated loan were used to fund FR2’s portfolio of equipment leases.
The rating of the Notes is derived by applying GCR’s Global Consumer ABS Rating Criteria and Global Structured Finance Rating Criteria. GCR reviewed the performance of leases originated by FUN in respect of FR2 for the period from Q1 2004 to Q4 2013. GCR was provided with the applicable monthly management reporting packs and investor reporting packs for the term relating to the review period. For more information, please read the Fintech Receivables 2 (RF) Limited – February 2014 Surveillance Report published on 19 February 2014. The Surveillance Report is available to subscribers of GCR’s Structured Finance subscription service.
The final, public rating accorded to the ‘AAA(ZA)(sf)’ rated securities relate to timely payment of interest and ultimate payment of principal, whilst the ratings on all other securities relate to ultimate payment of interest and ultimate payment of principal. The ratings exclude an assessment of the ability of the Issuer to pay either any (early repayment) penalties or any default interest rate penalties.
+27 11 784 1771
Head of Structured Finance
+27 11 784 1771.
APPLICABLE METHODOLOGIES AND RELATED RESEARCH
Global Structured Finance Rating Criteria (February’14)
Global Consumer ABS Rating Criteria (April’13)
FR2 New Issuance Report (August’13)
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SALIENT FEATURES OF ACCORDED RATINGS
GCR affirms that a.) no part of the rating was influenced by any other business activities of the credit rating agency; b.) the rating was based solely on the merits of the rated entity, security or financial instrument being rated; c.) such rating was an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the rating is for a maximum of 12 months, or earlier as indicated by the applicable credit rating document.
The Issuer and the Arranger participated in the rating process via face-to-face meetings, teleconferences and other written correspondence. Furthermore, the quality of info received was considered adequate and has been independently verified where possible.
The rating/s above were solicited by the Issuer of the Transaction; GCR has been compensated for the provision of the ratings.
The credit rating/s has been disclosed to the Issuer and the Arranger with no contestation of the rating.
The information received from the Arranger and other reliable third parties to accord the credit ratings included the latest Issuer’s audited annual financial statements for the year ending June 2013; portfolio performance data relating to the underlying equipment lease portfolio covering the period January 2004 – December 2013; an overview of the Issuer’s lease portfolio as per 31 December 2013; monthly management reporting packs and quarterly investor reporting packs.
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