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\t\t<\/span><\/p>\n <\/span><\/p>\n \n \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":" July 26 – Link to Fitch Ratings’ Report: Torque Securitisation (RF) LimitedJuly 26 – Fitch Ratings has assigned Torque Securitisation (RF) Limited’s notes the following expected ratings: ZAR 250.0m Class A1: ‘AAA(EXP)zaf’; Outlook Stable ZAR 238.0m Class A2: ‘AAA(EXP)zaf’; Outlook Stable ZAR 200.0m Class A3: ‘AAA(EXP)zaf’; Outlook Stable ZAR 84.0m Class B: ‘A+(EXP)zaf’; Outlook Stable […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-12807","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12807"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12807\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}July 26 - Link to Fitch Ratings' Report: Torque Securitisation (RF) LimitedJuly 26 - Fitch Ratings has assigned Torque Securitisation (RF) Limited's\nnotes the following expected ratings:\n\nZAR 250.0m Class A1: 'AAA(EXP)zaf'; Outlook Stable\nZAR 238.0m Class A2: 'AAA(EXP)zaf'; Outlook Stable\nZAR 200.0m Class A3: 'AAA(EXP)zaf'; Outlook Stable\nZAR 84.0m Class B: 'A+(EXP)zaf'; Outlook Stable\nZAR 49.0m Class C: 'BBB(EXP)zaf'; Outlook Stable\nZAR 70.0m Class D: Not rated\n\nThe notes are backed by a revolving pool of South African auto loan receivables\noriginated by Iemas Financial Services (Co-operative) Limited (Iemas, not\nrated). Iemas is the largest financial services trade co-operative in South\nAfrica and has been originating auto loans since 1993.\n\nFitch analysed the preliminary portfolio, which as of 30 June 2012, comprised\n8,182 loans with an average current balance of ZAR110,017. No loans are\noriginated with a term greater than 72 months. The WA remaining term was 48\nmonths and 31% of the pool related to new vehicles with 69% representing used\nvehicles.\n\nThe historical default rate performance for the pool has been in line with\nEuropean auto transactions, despite South Africa's high unemployment rate and\nlow GDP. This performance is driven by the fact that the majority of loans are\nrepaid via salary deduction. Fitch has set a base case default assumption of 4%\nand then applied median stresses (eg 5x for 'AAA(zaf)' to the base case.\nFurther, Fitch applied a recovery rate base case of 50% and used the median\nstresses (50% for 'AAA(zaf)') as specified in its criteria.\n\nFor most of the loans, the monthly instalments are paid via salary deduction, ie\npayments are deducted by the employers from the gross salary of the borrowers\nand are then directly paid to Iemas. While this is generally a very strong\nfeature, the transaction is also exposed to some employer concentrations.\nAlthough this risk is limited by concentration limits built into the\ntransaction, Fitch took the concentrations into account by increasing its\ndefault assumptions for high rating scenarios.\n\nCE will be provided via overcollateralisation provided by subordination of the\njunior notes and a cash reserve account funded at closing. For example, the\nClass A notes benefit from 23.8% credit enhancement, which is provided by 22.8%\novercollateralisation and the 1.0% cash reserve.\n\nIemas will act as servicer to the transaction. The transaction benefits from a\nback-up servicer (BUS), a subsidiary of Deloitte (unrated), which is contracted\nto board the portfolio and commence servicing within 7 days of invocation of the\nBUS agreement. Fitch considers the implementation of a BUS positive for the\ntransaction to reduce payment interruption and liquidity risks. The transaction\nalso benefits from a liquidity facility which can cover around three months of\nsenior expenses and interest on the rated notes.\n\nA presale report is available at www.fitchratings.com.\n\n\nAdditional information is available at www.fitchratings.com. The ratings above\nwere solicited by, or on behalf of, the issuer, and therefore, Fitch has been\ncompensated for the provision of the ratings.\n\nApplicable criteria, \"EMEA Consumer ABS Rating Criteria\" and EMEA Consumer ABS\nRating Criteria - Auto Residual Value Addendum, dated 12 July 2012, are\navailable at www.fitchratings.com.\n\nApplicable Criteria and Related Research:\nEMEA Consumer ABS Rating Criteria\nEMEA Consumer ABS Rating Criteria - Auto Residual Value Addendum<\/pre>\n