OREANDA-NEWS. Fitch Ratings has affirmed Salvadoreno DPR Funding, Ltd's series 2015 loans at 'BBB-'. The Rating Outlook is Stable. A full list of rating actions follows at the end of this release.

The future flow program is backed by existing and future U. S. dollar-denominated diversified payment rights (DPRs) originated by Banco Davivienda Salvadoreno, S. A. (Davivienda Sal). DPRs include all electronic remittances to third-party beneficiaries and mostly relate to export payments and family remittances. The majority of DPRs are processed by designated depositary banks (DDBs) that have signed acknowledgment agreements (AAs), irrevocably obligating the DDBs to send DPRs to an offshore account controlled by the trustee.

Fitch's ratings address timely payment of interest and principal on a quarterly basis.

KEY RATING DRIVERS

Originator Credit Quality: Fitch affirmed Davivienda Sal's long-term Issuer Default Rating (IDR) at 'BB'/Outlook Stable and Viability Rating (VR) at 'b+' on April 8, 2016. The bank's IDR reflects the likelihood of support from its main shareholder, Colombian Banco Davivienda, S. A. ('BBB'/Outlook Stable), and the VR is highly influenced by El Salvador's challenging operating environment.

Going Concern Assessment Score: Fitch assigns a going concern assessment (GCA) score of 'GC2' to Davivienda Sal, reflecting the bank's moderate systemic importance and the strong likelihood of parent support. The GCA score serves as a rating cap on the future flow transaction, but Fitch tempers notching uplift from the originator IDR when the sponsor bank benefits from parent support.

Performance Consistent with Expectations: DDB and former DDB flows have supported an average debt service coverage ratio (DSCR) of approximately 37x since program reactivation. This moderate level of coverage is in line with Fitch's expectations.

Moderately Large Program Size: The outstanding balance of the program is $175 million, which represents 8.6% of the bank's total liabilities and 42.2% of long-term funding. While Fitch is comfortable with the level of future flow debt at the current rating level, an increase in these ratios could impact the transaction ratings.

Sovereign Stability: Fitch affirmed El Salvador's long-term IDRs at 'B+' with a Stable Outlook on July 7, 2016. The sovereign ratings are supported by macroeconomic stability underpinned by dollarization, an adequately capitalized banking system and a solid sovereign repayment record.

RATING SENSITIVITIES

The credit strength of the transaction is linked to the performance of Davivienda Sal. The future flow ratings are sensitive to changes in the credit quality of Davivienda Sal, the ability of the DPR business line to continue operating (as reflected by the GCA score) and changes in the ratings assigned to El Salvador. A downgrade of the bank would trigger a downgrade to the future flow ratings. In addition, severe reductions in coverage levels or an increase in the level of future flow debt as a percentage of the bank's liabilities could result in rating downgrades.

DUE DILIGENCE USAGE

No third party due diligence was provided to or reviewed by Fitch in relation to this rating action

Fitch has affirmed the following ratings:

--Series 2015-1 loan at 'BBB-'; Outlook Stable;

--Series 2015-2 loan at 'BBB-'; Outlook Stable;

--Series 2015-3 loan at 'BBB-'; Outlook Stable.