Fitch Affirms General DPR Funding Ltd. at 'A'; Outlook Stable
--USD100 million series 2012-A notes at 'A'; Outlook Stable.
The series is backed by existing and future diversified payment rights (DPRs) originated by Panamanian bank Banco General S.A. (BG). DPRs include electronic payment orders intended for third-party beneficiaries that relate to exports, re-exports through the Colon Free Trade Zone, capital flows, financial services and foreign direct investment. The majority of these flows are processed by designated depository banks (DDBs) that have signed account agreements (AAs).
KEY RATING DRIVERS
Credit Quality of BG.: On Oct. 26, 2015, Fitch affirmed the long-term foreign currency (FC) Issuer Default Rating (IDR) and Viability Rating of Banco General (BG) at 'BBB+' and 'bbb+', respectively, with a Stable Outlook. The bank has a going concern assessment (GCA) score of 'GC1'.
Relatively High Coverage Ratios: DDB flows supported an average maximum monthly debt service coverage ratio (DSCR) of 174.2x during 2015. Fitch's maximum monthly DSCR considers DDB flows and the maximum periodic debt service over the life of the program.
Relatively Small Program Size: The outstanding balance of the program is \\$80 million, which represents less than 1% of the bank's total liabilities and 7.8% of its long-term funding.
Sovereign Stability: Fitch rates Panama's IDR 'BBB' with a Stable Outlook. The Country Ceiling is 'A'.
DDB Concentration: Citibank N.A. (Citibank; 'A+'/Outlook Stable) has processed approximately 77% of DPR flows since program inception. Although the transaction rating is not currently constrained by Citibank's IDR, the rating on the notes incorporates the transaction's exposure to Citibank as processor of the vast majority of program DPRs.
The credit strength of the transaction is linked to the performance of BG. The rating is sensitive to downgrades of the bank's IDR; the ability of the DPR business line to continue operating, as reflected by the GCA score; the performance of the DPR business line; changes in the sovereign environment; and, to a lesser extent, the rating of Citibank.
DUE DILIGENCE USAGE
No third-party due diligence was provided to or reviewed by Fitch in relation to this rating action.