NOTE: On August 13, 2012, the press release was revised as follows: In the list of rating actions for Issuer (Program) International Diversified Payment Rights Company, details for Series 2004-1 and Series 2007-1 were corrected. In the list of rating actions for Issuer (Program) HSBC Brazil DPR Finance (No. 1) Limited, details for Series 2006-A were corrected. Revised release follows.
Sao Paulo, June 28, 2012 -- Moody's Investors Service concluded today the review of twelve notes issued
by four separate Diversified Payment Rights programs (DPRs) sponsored
by four Brazilian banking groups. The ratings had been placed on
review for possible downgrade on March 1, 2012. Moody's
downgraded ratings of ten notes and affirmed ratings of two notes,
as follows:
SPONSOR: Banco Santander (Brasil) S.A. (BFSR:
C- ; LT Domestic Bank Deposits: Baa1 global scale)
Issuer (Program): Brazil Foreign Diversified Payment Rights Finance
Company
- Series 2008-1: global foreign currency rating downgraded
to Baa1 from A2
- Series 2008-2: global foreign currency rating downgraded
to Baa1 from A2
SPONSOR: HSBC Bank Brasil S.A. - Banco Multiplo
(BFSR: C- ; LT Domestic Bank Deposits: A1 global
scale)
Issuer (Program): HSBC Brazil DPR Finance (No. 1) Limited
- Series 2006-A: A1 global foreign currency rating confirmed; the underlying rating A1 confirmed
SPONSOR: Banco Bradesco S.A. (BFSR: C-
; LT Domestic Bank Deposits: A3 global scale)
Issuer (Program): International Diversified Payment Rights Company
- Series 2004-1: global foreign currency rating downgraded to A3 from A1; the underlying rating downgraded to A3 from A1
- Series 2007-1: global foreign currency rating downgraded to A3 from A1; the underlying rating downgraded to A3 from A1
- Series 2007-2: global foreign currency rating downgraded
to A3 from A1
- Series 2007-4: global foreign currency rating downgraded
to A3 from A1
- Series 2010-1: global foreign currency rating downgraded
to A3 from A1
SPONSOR: Banco do Brasil S.A. (BFSR: C-
; LT Domestic Bank Deposits: A3 global scale)
Issuer (Program): Dollar Diversified Payment Finance Company
- Series 2003-2: global foreign currency rating downgraded
to A3 from A2
- Series 2008-1: global foreign currency rating remains
at Aa3 on review for downgrade given outstanding insurance provided by
Assured Guaranty Corp (Aa3 Insurance Financial Strength, on review
for possible downgrade). The underlying rating or shadow rating
is downgraded to A3 from A2.
- Series 2008-2: global foreign currency rating downgraded
to A3 from A2
- Series 2008-3: global foreign currency rating downgraded
to A3 from A2
RATINGS RATIONALE
The conclusion of the review of DPRs follows the conclusion of the review
of the respective sponsoring Brazilian banking groups finalized on June
27, 2012. Please refer to the press release titled "Moody's
concludes review for downgrade on Brazilian financial institutions".
Under Moody's approach to rating future flow transactions backed by Diversified
Payment Rights (DPRs), the local currency rating of the originator
generally acts as a cap on the ratings assigned to the issued notes,
thereby prompting today's rating actions.
As a result, any rating movement of the global local currency deposit
rating of the sponsoring bank has a direct impact on the maximum rating
achievable by a DPR transaction.
Moody's notes that all four DPR programs are performing according
to expectations. As of May 2012, quarterly debt service coverage
ratios (DSCR) were as follows:
Brazil Foreign Diversified Payment Rights Finance Company (Banco Santander
as sponsor): 60 times
HSBC Brazil DPR Finance (No. 1) Limited (HSBC Bank Brasil as sponsor):
1050 times
International Diversified Payment Rights Company (Banco Bradesco as sponsor):
108 times
Dollar Diversified Payment Finance Company (Banco do Brasil as sponsor):
284 times
The principal methodology used in these ratings was "Moody's Approach
to Rating Diversified Payment Rights Securitisations" published in March
2009. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Information sources used to prepare these ratings are the following:
parties involved in the ratings, and public information.
Moody's considers the quality of information available on the rated entities,
obligations or credits satisfactory for the purposes of issuing these
ratings.
Moody's adopts all necessary measures so that the information it uses
in assigning the ratings is of sufficient quality and from sources Moody's
considers to be reliable including, when appropriate, independent
third-party sources. However, Moody's is not an auditor
and cannot in every instance independently verify or validate information
received in the rating process.
Please see the ratings disclosure page on www.moodys.com
for general disclosure on potential conflicts of interests.
Please see the ratings disclosure page on www.moodys.com
for information on (A) MCO's major shareholders (above 5%) and
for (B) further information regarding certain affiliations that may exist
between directors of MCO and rated entities as well as (C) the names of
entities that hold ratings from MIS that have also publicly reported to
the SEC an ownership interest in MCO of more than 5%. A
member of the board of directors of this rated entity may also be a member
of the board of directors of a shareholder of Moody's Corporation;
however, Moody's has not independently verified this matter.
Please see Moody's Rating Symbols and Definitions on the Rating Process
page on www.moodys.com for further information on the meaning
of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history.
The date on which some ratings were first released goes back to a time
before Moody's ratings were fully digitized and accurate data may not
be available. Consequently, Moody's provides a date that
it believes is the most reliable and accurate based on the information
that is available to it. Please see the ratings disclosure page
on our website www.moodys.com for further information.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Johann Grieneisen
Vice President - Senior Analyst
Structured Finance Group
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
JOURNALISTS: 800-891-2518
SUBSCRIBERS: 55-11-3043-7300
Maria Muller
Senior Vice President
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
JOURNALISTS: 800-891-2518
SUBSCRIBERS: 55-11-3043-7300
Moody's concludes review of four Diversified Payment Right programs sponsored by Brazilian banks