Fitch Affirms CIC Receivables Master Trust's Notes at 'BBB+(EXP)'; Outlook Stable

CHICAGO--()--Fitch Ratings has affirmed the expected rating assigned to the proposed issuance of notes by CIC Receivables Master Trust following a revised offering circular as follows:

--Up to USD 350,000,000 series 2014-A notes at 'BBB+ (EXP)'; Outlook Stable.

On March 7, 2014, Fitch assigned the 'BBB+(EXP)'/Stable Outlook rating to the proposed issuance of notes in an amount up to USD250,000,000.

Credomatic International Corporation (CIC) is the acquiring and issuing partner of Visa International Service Association (Visa) and MasterCard International Incorporated (MasterCard) in Central America. The issuance is backed by future flows due from Visa and MasterCard related to international merchant vouchers acquired by CIC's local subsidiaries in Costa Rica, Guatemala, El Salvador, Honduras, and Nicaragua. The series 2014-A notes will be a new issuance out of the existing CIC Receivables Master Trust program established in 2002.

Fitch's rating addresses the timely payment of interest and principal on a quarterly basis.

KEY RATING DRIVERS

The expected rating reflects (i) CIC's local currency (LC) Issuer Default Rating (IDR) of 'BBB' and its going concern assessment score of 'GC2'; (ii) the relatively high level of future flow debt to CIC's overall funding; (iii) the strength and importance of CIC's credit card business to the banking business of BAC Credomatic Group; (iv) low diversion risk as both Visa and MasterCard direct related payments to collection accounts controlled by the trustee; (v) the importance of CIC as a regional partner to Visa and MasterCard; and (vi) the transaction structure, which adequately mitigates potential sovereign and/or redirection risks.

The above mentioned characteristics allow the transaction to benefit from a one-notch uplift from CIC's 'BBB' IDR.

RATING SENSITIVITIES

The rating is sensitive to changes in the credit quality of CIC. A downgrade of CIC's 'BBB' LC IDR could lead to a downgrade of the notes. In addition, severe reductions in coverage levels could also result in rating downgrades. The rating assigned to the notes may be sensitive to the ratings of the relevant sovereign environments. To a lesser extent, the rating is also sensitive to Fitch's view of the credit qualities of Visa and MasterCard.

TRANSACTION SUMMARY

The notes are backed by flows related to international USD-denominated Visa and MasterCard merchant voucher receivables originating in Costa Rica, Guatemala, El Salvador, Nicaragua and Honduras by CIC. The USD-denominated Visa and MasterCard merchant voucher receivables are generated when a card member makes charges in a country different from his country of origin. The receivables are submitted to Visa or MasterCard for clearing. Visa and MasterCard each signed a Consent and Agreement obligating them to make all payments related to the USD international merchant vouchers into an account controlled by the trustee for the benefit of the certificate holders.

CIC is an exempt company incorporated in the British Virgin Islands and is a wholly owned subsidiary of BAC International Bank Inc. (BIB), which is incorporated in Panama. BIB is an indirect subsidiary of Grupo Aval Acciones y Valores, S.A., a Colombian operation, as of December 2010.

CIC is the holding company of the group's credit card business and banking operations in each Central American country with the exception of Panama. Through its subsidiaries, CIC provides a variety of financial services to individuals and institutions primarily in Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Mexico. CIC is a leader in the credit card business with dominant market shares in the acquiring and in the issuing businesses.

For more details on the Key Rating Drivers and Rating Sensitivities please refer to the pre-sale report which will be available shortly on Fitch's website.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Future Flow Securitization Rating Criteria' (June 18, 2013);

--'Global Structured Finance Rating Criteria' (May 24, 2013);

-- CIC Receivables Master Trust - Series 2014-A Certificates Presale report (March 7, 2014).

Applicable Criteria and Related Research:

CIC Receivables Master Trust

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738842

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Future Flow Securitization Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=711077

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=825790

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Gregory Lane, +1-312-606-2304
Associate Director
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Secondary Analyst
Maria Paula Moreno, +57-1-326-9999
Senior Director
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Gregory Lane, +1-312-606-2304
Associate Director
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Secondary Analyst
Maria Paula Moreno, +57-1-326-9999
Senior Director
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com