Compass Securitisation (RF) Limited

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Compass Securitisation (RF) Limited
  • Compass Securitisation (RF) Limited
  • Year : Aug 2019
3 Tokens
USD 300.00
Summary

Compass Securitisation (RF) Limited (“Compass”, “the Issuer”) is a ZAR1bn Equipment Receivables Backed Note Programme established in 2014. The Issuer issued an aggregate of R240m in Class A4 Notes and R103m in subordinated, unrated Class D4 Notes in June 2017. Subsequently, in December 2018, the Issuer issued an additional R110m in Class A5 Notes and R47m in subordinated, unrated Class D5 Notes.

Additional Information

Rating Rationale

The Transaction performed in line with GCR’s expectations. No performance triggers or portfolio covenants were breached during the period under review (October 2018 – March 2019).

The calculation of the ‘aggregate net defaults for the last 12 months’ performance trigger was amended to be consistent with the transaction documents. Subsequent to the amendment the reported aggregate defaults were relatively higher, albeit the trigger has never been reported in breach.

The Issuer amended the transaction documents to include a provision that would trigger the amortisation of the Programme should the cash reserve not be funded up to its required amount for a consecutive 3-month period. In addition, the Permitted Investments rating threshold was updated and is now in line with the rating thresholds stipulated in GCR’s Master Structured Finance Rating Criteria.

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