Fitch upgraded and affirmed the ratings of Alliance DPR bonds

30.07.10 17:58
/IRBIS, July 30, 2010/ - Fitch Ratings Upgrades and Affirms Ratings of bonds Alliance DPR Company SA (Alliance DPR), indicated in the rating agency report on July 28. Bonds Series 2006-A: rating affirmed at "AAA", Stable. Series 2006 bonds-B: rating upgraded to the level "CC" to "B", "Stable" outlook. Bonds Series 2007- A: rating upgraded from "CC" to "B", "Stable" outlook. As indicated, this rating action follows the increase in Fitch 19 July 2010 from the level of "RD" to "B-" long-term Issuer Default Rating (IDR), the originator, Alliance Bank. The outlook is - Stable. "The affirmation of bonds Alliance DPR Series 2006-A reflects the fact that the credit quality of bonds linked to the rating of the Asian Development Bank (" AAA "/ Stable" / "F1 +") by a full guarantee provided by this bank "- indicated in the message. Alliance DPR transaction is a securitization of future diversified payment rights (DPR), which is the originator of Alliance Bank (Kazakhstan). Ratings bonds series 2006-B and 2007-A have been previously downgraded to "CC" after the lowering of long-term issuer default rating of JSC "Alliance Bank" to level "RD" in 2009 after the bank defaulted on part of its unsecured debt. Following the default of the Bank entered into a period of restructuring, which is now completed. Following the restructuring of the Bank's rating was upgraded to "B-" / "Stable" outlook and its business continuity assessment was revised to "GCA 3", which theoretically allows the bond rating is two levels higher than the rating of the bank. As in the case of securitization of diversified payment rights, the rating of the transaction is linked to the rating of the originator through an assessment of the continuity of the originator. "Although the scoring assessment" GCA 3 "theoretically allows excess rankings transaction rate of the bank on two levels, Fitch has decided to excess only one level, so the ratings of bond issues in 2006 and-B 2007-A were raised only to the level of" B ". This due to the fact that the basic cash flows continues to show weak performance, "- stated in the message. The agency pointed out those monthly and quarterly debt service coverage ratios (DSCR) continues to violate the relevant trigger levels, and the share of income from the authorized depository bank continues to be below 60 per cent trigger level. Violation of these triggers resulted offensive early amortization, which leads to more rapid depreciation of the deal than originally planned. At the same time, the amount of the cash flow seems to stabilize at current low levels, which is a sign of mitigating deterioration. All the trigger point for the originator, not based on flows of income improved, but remains weak. Fitch also tracks the share of internal cash flows in comparison with overseas in the transaction and in a more positive note, that the share of foreign flows remained high since the start of early amortization of the transaction. Given the generally low levels of basic revenue streams and the preservation of weak points in the bank, Fitch has decided to exceed the rating of the bank bond rating only one level. At the same time cushioning the transaction goes relatively quickly, which Fitch views as a positive factor. Since the deal the start of early amortization was extinguished about 70% of existing bonds. Given current trends, full depreciation on the transaction is likely to happen in a little over one year In addition, the transaction continues all the interest and principal payments, despite the bank defaulted on some other unsecured debt before the restructuring. After the restructuring of the Bank did not allow a default on any debt obligations. [2010-07-30]