Rpt fitch assigns nqaba finance 1 expected ratings; affirms existing notes

← Homepage

May 9 (The following statement was released by the rating agency)Fitch Ratings has assigned Nqaba Finance 1 (RF) Limited's (Nqaba Finance 1) additional floating-rate notes (FRN) National Long-term expected ratings, as this site class A16 FRN: 'AAA(zaf)(EXP)'; Outlook StableZAR302m class A17 FRN: 'AAA(zaf)(EXP)'; Outlook StableZAR40m class B15 FRN: 'AA(zaf)(EXP)'; Outlook StableZAR25m class C15 FRN: 'A+(zaf)(EXP)'; Outlook StableZAR30m class D7 FRN: 'A-(zaf)(EXP)'; Outlook StableThe new notes will be issued to refinance the existing class A9, A14, B9, B13 C9, C13 and D4 notes, all with a scheduled maturity of 22 May 2013. All other notes will remain after the refinance date of 22 May 2013. Fitch has also affirmed the currently outstanding notes, as this site class A9 FRN, affirmed at 'AAA(zaf)'; Outlook StableZAR115m class A10 fixed-rate notes, affirmed at 'AAA(zaf)'; Outlook StableZAR205m class A11 FRN, affirmed at 'AAA(zaf)'; Outlook StableZAR318m class A12 FRN, affirmed at 'AAA(zaf)'; Outlook StableZAR375m class A14 FRN, affirmed at 'AAA(zaf)'; Outlook StableZAR303m class A15 FRN, affirmed at 'AAA(zaf)'; Outlook StableZAR30m class B9 FRN, affirmed at 'AA(zaf)'; Outlook Stable

ZAR11m class B10 fixed-rate notes, affirmed at 'AA(zaf)'; Outlook StableZAR32m class B11 FRN, affirmed at 'AA(zaf)'; Outlook StableZAR10m class B13 FRN, affirmed at 'AA(zaf)'; Outlook StableZAR8m class B14 FRN, affirmed at 'AA(zaf)'; Outlook StableZAR12m class C9 FRN, affirmed at 'A+(zaf)'; Outlook StableZAR5m class C10 fixed-rate notes, affirmed at 'A+(zaf)'; Outlook StableZAR32m class C11 FRN, affirmed at 'A+(zaf)'; Outlook Stable

ZAR13m class C13 FRN, affirmed at 'A+(zaf)'; Outlook StableZAR5m class C14 FRN, affirmed at 'A+(zaf)'; Outlook StableZAR30m class D4 FRN, affirmed at 'A-(zaf)'; Outlook StableZAR5m class D5 FRN, affirmed at 'A-(zaf)'; Outlook StableZAR24m class D6 FRN, affirmed at 'A-(zaf)'; Outlook StableCredit enhancement is provided by overcollateralisation and totals 26.00% for the class A notes, 21.33% for the class B notes, 17.90% for the class C notes and 14.87% for the class D notes. In addition, the transaction features significant overcollateralisation of interest, resulting from the junior position of the interest payable under the subordinated loan in the priority of payments. KEY RATING DRIVERS Asset Performance:

The historical performance of the assets is strong relative to the rest of the South African mortgage market, with rates of delinquency of 90 days of 0.7% as of February 2013. This is due to the borrowers' stable employment background and the collection of mortgage payments through payroll deduction. this site transaction is "evergreen" revolving, since the purchase of new loans is allowed until the breach of certain performance triggers. It is also subject to certain covenants on the portfolio features. In addition, many borrowers also have the ability to draw their loans further. Eskom Dthis site transaction's performance is strongly dependent on that of Eskom as (i) the large majority of borrowers are employed by Eskom and pay the instalments by salary deduction; (ii) Eskom provides support to borrowers in the form of subsidies; and (iii) as there is some operational dependency on Eskom or its subsidiary EFC. Fitch therefore maintains a limited differential between the rating of the notes and that of Eskom. Overcollateralisation of this site interest due on the subordinated loan, which funds part of the mortgage portfolio purchase price, is paid junior to the principal note allocations. This provides significant overcollateralisation of interest and supports the senior notes. Planned Sale of this site would be committed to maintaining payroll deductions and subsidy payments to the borrowers despite the sale of EFC, as requested by the South African government. However, the termination of the back-up servicing agreement with ABSA, which will result from the sale of EFC, will further increase the transaction's reliance on EFC to perform as a servicer. RATING SENSITIVITIES Material increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case expectations, which in turn may result in potential rating actions on the notes. The agency stressed its 'AAA' assumptions by 30% for both weighted average foreclosure frequency and recovery rate. The stresses did not result in a downgrade of the class A notes. The percentage below which the proportion of loans serviced by payroll deduction may not fall as a result of a purchase of new loans will be decreased to 92% from 93% as of the date of the new notes issuance. However, this has no impact in Fitch's existing analysis, as the agency already assumes a higher proportion of borrowers leaving their employment with Eskom. More detailed model implied ratings sensitivity can be found in the presale report, which will shortly be available at this site For its ratings analysis, Fitch received a data template with most fields fully completed. To analyse the CE levels, Fitch evaluated the collateral using its default model, details of which can be found in the reports entitled 'EMEA RMBS Master Rating Criteria', dated 7 June 2012 and 'EMEA Criteria Addendum - South Africa' dated 21 February 2013', at this site The agency assessed the transaction cash flows using default and loss severity assumptions under various structural stresses including prepayment speeds and interest rate scenarios. The cash flow tests showed that each class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall and can retire principal by the legal final maturity. var $relatedItems = $('lia "/article/global-markets-idUSL5N1EU2HP"GLOBAL MARKETS-Accelerating economic activity, inflation sustain investors\' festive fizz/a/lilia "/article/eurozone-bonds-idUSL5N1EU1X1"UPDATE 1-Euro zone yields fall as investors look beyond headline inflation/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Bonds News/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Bonds News/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Bonds News/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Bonds News UPDATE 1-British consumers borrow at fastest rate in 11 years as inflation threat rises LONDON, Jan 4 British consumer borrowing increased by the biggest amount in more than 11 years in November, boosting the unexpectedly robust post-Brexit vote economy in what could prove to be a big spending spree ahead of an expected rise in prices. BRIEF-US Concrete says its proposed offering of $200 mln aggregate principal amount of its 6.375 pct senior notes due 2024 * US Concrete Inc says its proposed offering of $200 million aggregate principal amount of its 6.375% senior notes due 2024 Source text: [this site] Further company coverage: Kazakhstan 2016 inflation slows to 8.5 pct year-on-year MOSCOW, Jan 4 Inflation in Kazakhstan slowed to 8.5 percent in 2016 from 13.6 percent in 2015, the Statistics Committee said on Wednesday. MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push