TRIS Rating Co., Ltd., the Thai credit rating agency, announced today that it will apply the “(sf)” identifiers to the ratings of all existing and newly-issued structured finance products. This change will be implemented on 1 March 2012.
TRIS Rating said, the “(sf)” identifier will be shown next to the original letter rating symbol. While the meaning of the rating symbol itself remains the same. The addition of the “(sf)” identifier indicates that the debt instrument is deemed to meet the definition of “structured finance product” defined by the Securities and Exchange Commission (SEC). According to the SEC’s announcement Kor Chor 1/2555, No. 3, a “structured finance product” is fully defined under the following criteria:
(1) an instrument which is issued by a special purpose vehicle under a securitization program or any other program that has similar characteristics;
(2) repayments depend on the quality of the underlying assets which generate the income stream, either with or without the presence of a guarantor;
(3) the cash flows received are designed in a manner so that the assessment of the default risk of the instrument is not based solely on the quality of the asset.
Currently, only the issue ratings TRIS Rating assigned to DAD SPV Co., Ltd., at “AAA (sf)”, are deemed to meet the SEC’s definition of “structured finance products”. -- End
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