Thai Rating and Information Services Co., Ltd. (TRIS) has assigned a "A-" rating to the proposed Bt1,150 million senior secured debentures of Structured Thai Asset Securitization Corp., Ltd. (STASCO). The rating reflects the 27% credit support provided by Bt425 million subordinated secured debentures and the ability of the three mortgaged properties to generate cash flow.
TRIS reported that STASCO was established as a special-purpose company in order to raise funds by issuing senior and subordinated secured debentures to purchase three issues of secured debentures (Collateral Bonds) under a cross default and a cross collateralization from three issuers -- Lotus Tower Ltd., Altea Regency Park Bangkok Ltd. and Punjab Development Ltd. The collaterals of the bonds are the first lien mortgages and/or leasehold interests in land and buildings as well as equity shares pledged by shareholders of the three issuers of the secured debentures. While the mortgaged properties are Lotus Novotel Hotel and The Regency Park Hotel managed by AAPC (Thailand) Ltd. under the brand name "Accor" as well as Orchid Tower Apartment managed by CB Richard Ellis (Thailand).
TRIS calculates that the pool of three secured debenture issues -- excluding the 27% that are the subordinated secured debenture issues -- has an adjusted loan-to-value (LTV) ratio of 66% and a stress debt service coverage (DSCR) of 1.17 times based on assumptions in reduced occupancy rates and assumed amortization. The STASCO issuer and three secured debenture issuers being special-purpose companies supports the transaction strength as do the use of reserve accounts, lock boxes and a waterfall for cash management, and the cross default and the cross collateralization. The mortgaged properties being under the care of international professional property management companies also support the transaction strength. Risk factors associated with the transaction include refinancing risks and uncertainties about what economic impact the global reactions to the terrorist attacks on the United States and the subsequent fighting in Afghanistan will have on the securing properties, which are tourism and travel-related business.
Structured Thai Asset Securitization Corp., Ltd. (STASCO) Issue Rating Bt1,150 million senior secured debentures due 2005 (2001A Bonds) A-
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TRIS reported that STASCO was established as a special-purpose company in order to raise funds by issuing senior and subordinated secured debentures to purchase three issues of secured debentures (Collateral Bonds) under a cross default and a cross collateralization from three issuers -- Lotus Tower Ltd., Altea Regency Park Bangkok Ltd. and Punjab Development Ltd. The collaterals of the bonds are the first lien mortgages and/or leasehold interests in land and buildings as well as equity shares pledged by shareholders of the three issuers of the secured debentures. While the mortgaged properties are Lotus Novotel Hotel and The Regency Park Hotel managed by AAPC (Thailand) Ltd. under the brand name "Accor" as well as Orchid Tower Apartment managed by CB Richard Ellis (Thailand).
TRIS calculates that the pool of three secured debenture issues -- excluding the 27% that are the subordinated secured debenture issues -- has an adjusted loan-to-value (LTV) ratio of 66% and a stress debt service coverage (DSCR) of 1.17 times based on assumptions in reduced occupancy rates and assumed amortization. The STASCO issuer and three secured debenture issuers being special-purpose companies supports the transaction strength as do the use of reserve accounts, lock boxes and a waterfall for cash management, and the cross default and the cross collateralization. The mortgaged properties being under the care of international professional property management companies also support the transaction strength. Risk factors associated with the transaction include refinancing risks and uncertainties about what economic impact the global reactions to the terrorist attacks on the United States and the subsequent fighting in Afghanistan will have on the securing properties, which are tourism and travel-related business.
Structured Thai Asset Securitization Corp., Ltd. (STASCO) Issue Rating Bt1,150 million senior secured debentures due 2005 (2001A Bonds) A-
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