TRIS Rating Co., Ltd. has assigned “AAA” ratings to two new series of debentures of
DAD SPV Co., Ltd. (SPV or the Issuer): up to Bt2,200 million with a tenor of 14 years, and up to Bt6,000 million with a tenor of 19 years. At the same time, TRIS Rating has affirmed the “AAA” ratings for existing debentures of SPV (DAD12NA, DAD15NA, DAD20NA, DAD25NA) with tenors of 7, 10, 15, and 20 years. All the rated debentures are issued under the securitization program. The proceeds from this program will
be used by Dhanarak Asset Development Co., Ltd. (DAD or the Originator) to fund the construction of the Bangkok Metropolitan Government Office Center (the Government Office Center) on Chaeng Wattana road, which will be leased to the Treasury Department (TD or the Tenant) for 30 years.
The ratings reflect the creditworthiness of TD, which is a department of the Thai government, as the sole tenant of the Government Office Center. The ratings also address the certainty of the cash flow streams from the lease and service payments from TD and the sufficiency of the cash flows to fulfill all obligations in a timely manner.
TRIS Rating reported that SPV or the Issuer is a limited liability company established under the laws of Thailand and was granted special purpose vehicle status by the Securities and Exchange Commission (SEC). The Issuer is 49% owned by DAD, a wholly-owned subsidiary of the Ministry of Finance (MOF). All outstanding and new debentures are parts of the Issuer’s Bt24,000 million 3-year securitization program (2005-2007), with the remaining debentures expected in 2007. The rated debentures are structured to receive lease and service payments from TD under a 30-year Building Space Lease Agreement, a 30-year Service Agreement, and a 5-year Furniture Procurement Agreement, collectively referred to as the “Underlying Agreements,” that TD has engaged with DAD. The purchase price of these rights at Bt40,000 million was partly financed by the proceeds from the first issue of debentures while the remaining balance was paid in the form of a subordinated promissory note (sub P/N), which is ranked lower than the rated debentures. The proceeds from the two new series of debentures will be used to redeem a portion of the sub P/N previously issued to DAD. The remaining portion of the sub P/N will serve as a credit enhancement for both new and existing debentureholders.
TRIS Rating said, TD is not allowed to terminate the lease as long as the debentures issued under this securitization program or any new debentures issued to replace the existing debentures have not been fully redeemed. Any future issuance of debentures by the Issuer under this securitization program will be subject to TRIS Rating’s affirmation that the ratings of the outstanding debentures will not be adversely affected. -- End
DAD SPV Co., Ltd. (SPV or the Issuer)
Issue Ratings:
Up to Bt24,000 million debentures issued under the Project approved under the Emergency Decree on Special Purpose Vehicle for Securitization B.E. 2540:
- DAD12NA: Bt1,500 million debentures due 2012 Affirmed at AAA
- DAD15NA: Bt2,000 million debentures due 2015 Affirmed at AAA
- DAD20NA: Bt1,800 million debentures due 2020 Affirmed at AAA
- DAD25NA: Bt5,000 million debentures due 2025 Affirmed at AAA
- Up to Bt2,200 million debentures due 2020 (Series 5) AAA
- Up to Bt6,000 million debentures due 2025 (Series 6) AAA
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Copyright 2006, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
DAD SPV Co., Ltd. (SPV or the Issuer): up to Bt2,200 million with a tenor of 14 years, and up to Bt6,000 million with a tenor of 19 years. At the same time, TRIS Rating has affirmed the “AAA” ratings for existing debentures of SPV (DAD12NA, DAD15NA, DAD20NA, DAD25NA) with tenors of 7, 10, 15, and 20 years. All the rated debentures are issued under the securitization program. The proceeds from this program will
be used by Dhanarak Asset Development Co., Ltd. (DAD or the Originator) to fund the construction of the Bangkok Metropolitan Government Office Center (the Government Office Center) on Chaeng Wattana road, which will be leased to the Treasury Department (TD or the Tenant) for 30 years.
The ratings reflect the creditworthiness of TD, which is a department of the Thai government, as the sole tenant of the Government Office Center. The ratings also address the certainty of the cash flow streams from the lease and service payments from TD and the sufficiency of the cash flows to fulfill all obligations in a timely manner.
TRIS Rating reported that SPV or the Issuer is a limited liability company established under the laws of Thailand and was granted special purpose vehicle status by the Securities and Exchange Commission (SEC). The Issuer is 49% owned by DAD, a wholly-owned subsidiary of the Ministry of Finance (MOF). All outstanding and new debentures are parts of the Issuer’s Bt24,000 million 3-year securitization program (2005-2007), with the remaining debentures expected in 2007. The rated debentures are structured to receive lease and service payments from TD under a 30-year Building Space Lease Agreement, a 30-year Service Agreement, and a 5-year Furniture Procurement Agreement, collectively referred to as the “Underlying Agreements,” that TD has engaged with DAD. The purchase price of these rights at Bt40,000 million was partly financed by the proceeds from the first issue of debentures while the remaining balance was paid in the form of a subordinated promissory note (sub P/N), which is ranked lower than the rated debentures. The proceeds from the two new series of debentures will be used to redeem a portion of the sub P/N previously issued to DAD. The remaining portion of the sub P/N will serve as a credit enhancement for both new and existing debentureholders.
TRIS Rating said, TD is not allowed to terminate the lease as long as the debentures issued under this securitization program or any new debentures issued to replace the existing debentures have not been fully redeemed. Any future issuance of debentures by the Issuer under this securitization program will be subject to TRIS Rating’s affirmation that the ratings of the outstanding debentures will not be adversely affected. -- End
DAD SPV Co., Ltd. (SPV or the Issuer)
Issue Ratings:
Up to Bt24,000 million debentures issued under the Project approved under the Emergency Decree on Special Purpose Vehicle for Securitization B.E. 2540:
- DAD12NA: Bt1,500 million debentures due 2012 Affirmed at AAA
- DAD15NA: Bt2,000 million debentures due 2015 Affirmed at AAA
- DAD20NA: Bt1,800 million debentures due 2020 Affirmed at AAA
- DAD25NA: Bt5,000 million debentures due 2025 Affirmed at AAA
- Up to Bt2,200 million debentures due 2020 (Series 5) AAA
- Up to Bt6,000 million debentures due 2025 (Series 6) AAA
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Copyright 2006, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.