Moody’s Latin America has assigned a rating of Aaa.ar (Argentine National Scale) and of Ba3 (Global
Scale, Local Currency) to the Debt Securities (VDF) of Fideicomiso
Financiero Tarjeta Privada XVIII issued by Banco de Valores – acting
solely in its capacity as Issuer and Trustee and also assigned ratings of Ca.ar (Argentine National Scale) and Ca
(Global Scale, Local Currency) to the subordinated Certificates. Banco de Valores S.A. (Issuer and Trustee) issued one class of
peso-denominated, floating-rate bonds (VDF) and a residual piece (CP),
all of them backed by a pool of credit card receivables originated and
serviced by Banco Privado de Inversiones (BPI). BPI is the seller of the receivables and the primary servicer of the
transaction. The bank was founded in 1993 to provide financial services
to the middle-high and high income segment of the market. In 1996, BPI
began issuing MasterCard and Visa credit cards to its customers.
The VDF original balance is equal to 80% of the original pool balance.
At closing, the VDF were backed by credit card outstanding balance
generated by eligible accounts. The ownership of those accounts remains
with the originator but the receivables assigned to the trust. The
transaction has five reserve funds: an expenses fund, a liquidity reserve
fund, a backup servicer replacement fund, and sinking funds for the
interest and principal. The VDF will bear a floating interest rate (BADLAR + 300bps) with a
minimum rate of 13% and a maximum rate of 22%. If an early amortization
event occurs, the revolving period will terminate automatically. Moody’s considered the credit enhancement provided in this transaction
through the initial subordination levels (20% for VDF), as well as the
historical performance of BPI’s portfolio. In addition, Moody’s
considered factors common to consumer loans securitizations such as
delinquencies, payments rate and losses; as well as specific factors
related to the Argentine market, such as the probability of an increase
in losses if there are changes in the macroeconomic scenario in Argentina.
