RAM Ratings upgrades Salvare’s first tranche Senior Notes to AAA

Published on 13 Jun 2023.

Share Tweet Email

RAM Ratings has upgraded the rating of Salvare Assets Bhd’s (Salvare or the Issuer) RM39.0 mil first tranche Senior Class A Notes (Senior Notes) to AAA/Stable from A1/Stable. Salvare is a trust-owned, special-purpose vehicle incorporated to undertake the securitisation of receivables originated by Axiata Digital Capital Sdn Bhd (ADC or  the Originator). Boost’s micro-financing facility specialises in providing financing and insurance to underserved market segments, especially micro, small and medium-size enterprises.

First Tranche MTN

Outstanding Issue Amount (RM mil)*

OC Ratio* (%)


Rating Action

Senior Notes




Upgraded from A1/Stable

OC = overcollateralisation, including balances in the Designated Accounts
* as at end-April 2023

The rating upgrade reflects the Senior Notes’ fully cash-backed position which is expected to be sustained up to the maturity date of 30 September 2024. This view is based on the Issuer’s confirmation that it will initiate a final subsequent purchase of approximately RM14.0 mil of financing facilities prior to the end of the Revolving Period (RP) on 30 June 2023. 

Credit enhancement for the Senior Notes has improved significantly since issuance, partly due to the portfolio’s better than expected loss performance, given recoveries and repurchase of ineligible financing facilities by the Originator. Since issuance, Salvare has made two subsequent purchases totaling RM42.8 mil. 

As at end-April 2023, the portfolio’s cumulative net default rate was 3.6% (as a percentage of the outstanding principal balance plus balances in the SPV Finance and Principal Account), comfortably below the rapid amortisation event (RAE) trigger of 6.0%. Due to prepayments, the average collection rate on a two-month rolling basis, at 164.2%, was significantly higher than the RAE trigger of 90.0%. 

Unless the Issuer exercises the early redemption option or a RAE occurs, the transaction will enter the Controlled Amortisation Period after the RP ends, where all cash collections will be trapped in the Designated Accounts to pay quarterly coupon  and principal redemption of the Senior Notes on the maturity date.


Analytical contacts
L Nurisya Abdullah
(603) 3385 2492

Lim Chern Yit
(603) 3385 2528


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad

Rating Rationale

Ratings on Salvare Assets Berhad