CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed the following rating assigned to the notes issued by General DPR Funding Ltd. (General DPR):
--USD100 million Series 2012-A notes at 'A' with a Stable Outlook.
The series is backed by existing and future diversified payment rights (DPRs) originated by Panama-based Banco General S.A. (BG). Collateral includes electronic payment orders intended for third-party beneficiaries that relate to exports, re-exports through the Colon Free Trade Zone, capital flows, financial services and foreign direct investment. The majority of these flows are processed by designated depository banks (DDBs) that have signed account agreements (AAs).
Fitch's rating addresses the likelihood of timely payment of principal and interest on a quarterly basis.
KEY RATING DRIVERS
Credit Quality of BG: On Oct. 28, 2014, Fitch affirmed the foreign currency (FC) Issuer Default Rating (IDR) of Banco General (BG) at 'BBB+' with a Stable Outlook. The bank has a going concern assessment (GCA) score of 'GC1'.
Strong Performance of DPR Program: Total DPR flows grew an estimated 12.8% during the first 10 months of 2014 and are forecast to grow 8% in 2015, reflecting Panamanian economic growth and the strength of BG's DPR business. Quarterly debt service coverage ratios (DSCRs) averaged a robust 190.9x during the first 10 months of this year. This is based on average quarterly DDB flows and the maximum quarterly debt service.
Relatively Small Program Size: The current DPR program size, which consists of the $100 million series 2012-A that begins amortizing in February 2015, represents less than 1% of total bank liabilities.
Rating of Citibank N.A. (Citibank): The largest DDB, Citibank, has processed approximately 78% of DPR flows since program inception. Fitch rates the IDR of Citibank 'A' with a Stable Outlook. Although the transaction rating is not currently constrained by Citibank's IDR, the rating on the notes also reflects the transaction's exposure to Citibank as the largest processor of DPRs for BG.
Stable Sovereign Environment: On March 7, 2014, Fitch affirmed Panama's FC IDR at 'BBB' with a Stable Outlook and its country ceiling at 'A'.
RATING SENSITIVITIES
The rating assigned to the notes is sensitive to the IDR of BG, the performance of the DPR business line, the ability of the DPR business line to continue operating as reflected by the GCA score, and changes in the sovereign environment.
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'Future Flow Securitization Rating Criteria' (June 9, 2014)
--'Global Structured Finance Rating Criteria' (August 4, 2014)
--'DPR Securitizations from Lima to Istanbul' (Feb. 6, 2013)
Applicable Criteria and Related Research:
DPR Securitizations from Lima to Istanbul (A Comparative Perspective)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=700111
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Future Flow Securitization Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749768
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=932575
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