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RAM Ratings affirms AA2/Stable rating of Poseidon’s First Tranche Senior MTN

Published on 10 Oct 2024.

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RAM Ratings has affirmed the AA2/Stable rating of Poseidon ABS Berhad’s (Poseidon or Issuer) First Tranche Senior Medium-Term Notes (MTN) (see table). Poseidon is a trust-owned special-purpose vehicle incorporated to facilitate the securitisation of Buy Now Pay Later receivables, marketed under the SPayLater name, and originated through Shopee e-commerce platform by SeaMoney Capital Malaysia Sdn Bhd (SCM or the Originator).

The rating affirmation reflects credit support afforded by the receivables portfolio securing the First Tranche MTN, as reflected in the OC ratio. During the review period, the securitised portfolio performed within the predetermined trigger levels. All relevant transaction covenants were comfortably met. 

As at 14 September 2024, the cumulative default rate since issuance stood at 1.15%, significantly below the 20% trigger level. The two-month moving average collection rate of 111.72% and OC ratio of 48.88% were well above the respective trigger levels of 90% and 15%. Since issuance, the Issuer has purchased RM1.33 bil of additional receivables (by outstanding principal) while maintaining OC above the minimum required level. The transaction allows for the purchase of new receivables during the revolving period (up to 3 August 2025), provided that the minimum OC requirement of 37.61% is met. We have maintained our stressed default assumption following a review of SCM’s updated static pool performance that showed no material changes in default/delinquency performance. 

 

Analytical contacts
Liew Kar Ling
(603) 3385 2586
karling@ram.com.my

Lim Chern Yit
(603) 3385 2528
chernyit@ram.com.my

Media contact 
Sakinah Arifin 
(603) 3385 2500 
sakinah@ram.com.my

 

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 2024 by RAM Rating Services Berhad



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