RAM Ratings reaffirms AAA rating of Tresor Assets’ Tranche I Senior Bonds

Published on 18 October 2013

RAM Ratings has reaffirmed the AAA/stable rating of Tresor Assets Berhad’s (Tresor) Tranche I Senior Bonds (Senior Bonds or Tranche I). The transaction is no longer vulnerable to loss experience and/or changes in prepayment speeds as it is fully cash-collateralised.

We highlight that the transaction has more than sufficient cash balances (including Permitted Investments) to meet coupon payments on a timely basis as well as the ultimate redemption of the Senior Bonds by the respective maturity dates. As at end-June 2013, the RM51 million of available cash balances (including Permitted Investments) could cover the RM40 million of outstanding Senior Bonds as well as approximately RM5.4 million of required coupon obligations for the remaining tenure of the Bonds.

As at end-June 2013, Tranche I had a collateralisation level of 222.43%, based on its available cash balances (including Permitted Investments) and the outstanding surviving loan pool backing Tranche I. Under the terms of the Senior Bonds, Tresor has the option to exercise the “full early redemption” clause on each coupon-payment date after the third anniversary of the relevant issue date of that tranche.

Tresor is a trust-owned, special-purpose vehicle set up to undertake a RM1.5 billion funding programme involving receivables purchased by RCE Marketing Sdn Bhd. Tranche I is the ninth issuance under this programme, which is secured against a pool of personal loans originated by Koperasi Wawasan Pekerja-Pekerja Berhad, a co-operative.

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Yong Keck Phin

(603) 7628 1183

keckphin@ram.com.my