MEXICO CITY--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on FOVISSSTE's cross-border residential mortgage backed securities (RMBS):
TFOVIE 11U notes due in December 2024:
--Long-term rating affirmed at 'BBB+sf';
--National long-term rating affirmed at 'AAA(mex)'.
The Outlook remains Stable.
Fitch's ratings consider the good asset quality of the securitized pool of mortgage loans, which exhibits a 90+ day delinquency ratio of 0.36%, and credit enhancement levels of 47.4% in the form of over-collateralization when considering a cash reserve. This cash reserve is equivalent to 15.8% of the outstanding balance of the notes. Fitch's current ratings also consider FOVISSSTE's solid servicing capabilities which include a direct payroll deduction mechanism when collecting mortgage payments from borrowers, and the transaction's legal structure.
The notes are denominated in UDIs (an inflation-indexed unit used in Mexico) and the outstanding balance is UDI1,097,065,400 as of June 2012. Fitch's ratings address the likelihood of timely interest payment on any coupon payment date and principal payment at the legal maturity date.
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:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Criteria for Existing Asset Securitization in Emerging Markets: Sovereign Constraints' (June 28, 2012);
--'Rating Criteria for RMBS in Latin America' (Feb. 16, 2012);
--'TFOVIE 11U Notes' New Issue report (Aug. 8, 2011).
Applicable Criteria and Related Research:
Criteria for Existing Asset Securitisation in Emerging Markets: Sovereign Constraints
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=669810
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
TFOVIS 11-2U
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649529
Rating Criteria for RMBS in Latin America
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=666231
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.