Fitch Ratings has downgraded the ratings assigned to series A notes issued by Fideicomiso Mercantil Titularizacion Hipotecaria de
The downgrade on the notes follows Fitch's downgrade of
RATING ACTIONS
Entity / Debt
Rating
Prior
Fideicomiso Mercantil Titularizacion Hipotecaria de
A2
LT
CCC+sf
Downgrade
B-sf
A3
LT
CCC+sf
Downgrade
B-sf
A4
LT
CCC+sf
Downgrade
B-sf
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of 1
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Downgrade of Transaction Account Bank Provider: The series A notes are capped at the rating of the
However, in this case, the eligible bank has been defined as an entity with a rating equal to or maximum one notch below
Stable Pool Characteristics: The portfolio has finished the replenishment phase and has been static since
Adequate Capital Structure Supports Ratings: The series A notes benefit from a sequential pay structure, where their target amortization payments are senior to interest and principal payments on the series B notes. Series A also benefits from credit enhancement (CE) of 14.2% as of
Operational Risk Mitigated: Pursuant to the servicer agreement,
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The ratings are sensitive to the Ecuadorian sovereign's credit quality, as well as
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The ratings assigned to the class A notes issued by FIMEPCH 5 are sensitive to the credit quality of the Ecuadorian sovereign, as well as to the credit quality of
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
DATA ADEQUACY
The principal sources of information used in the analysis are described in the Applicable Criteria.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The credit quality of the Series A notes is currently capped at and driven by the rating of the
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
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