OREANDA-NEWS. Fitch Ratings affirms the notes issued by BAC San Jose DPR Funding Ltd as follows:

--USD50 million series 2014-1 notes due 2019 at 'BBB+';
--USD160 million series 2014-2 notes due 2021 at 'BBB+'.

The Rating Outlook is Stable.

The notes are backed by existing and future U.S. dollar-denominated diversified payment rights (DPRs) originated by Banco San Jose, S.A. (BAC San Jose; foreign currency [FC] Issuer Default Rating [IDR] 'BBB-'/Outlook Negative), part of the BAC/Credomatic group. DPRs include MT100 payment orders originated from export payments, capital transfers and personal remittances. The majority of DPRs are processed by designated depositary banks (DDBs) that have signed acknowledgement agreements (AAs).

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

KEY RATING DRIVERS
Credit Quality of BAC San Jose: Fitch currently rates BAC San Jose's local currency (LC) IDR 'BBB' with a Negative Outlook, and its viability rating (VR) 'bb+'. Fitch views BAC San Jose's DPR business line and performance risk consistence with a going concern assessment (GCA) score of 'GC2'.

Strong Program Performance: DDB flows supported an average maximum monthly debt service coverage ratio (DSCR) of 54.6x during the first three quarters of 2015. Fitch's maximum monthly DSCR considers DDB flows and the maximum periodic debt service over the life of the program.

Adequate Program Size: The DPR program represents approximately 5.6% of BAC San Jose's total liabilities and 43.8% of long-term debt, as of June 2015.

Sovereign Stability: Fitch rates Costa Rica's FC and LC IDRs 'BB+' with a Negative Outlook. The Country Ceiling is 'BBB-'.

RATING SENSITIVITIES
The credit strength of the transaction is linked to the performance of BAC San Jose. The ratings are sensitive to downgrades of the bank's ratings and the ability of the DPR business line to continue operating, as reflected by the GCA score. While a downgrade of the sovereign or the bank may lead to a downgrade of the transaction, any change in these variables will be analysed in a rating committee to assess the possible impact on the transaction ratings. A one-notch downgrade of the bank's IDRs and/or sovereign's IDRs might not automatically trigger a downgrade to the transaction ratings.

DUE DILIGENCE USAGE
No third-party due diligence was provided to or reviewed by Fitch in relation to this rating action.