News Column

Fitch Affirms La Hipotecaria's Cross-Border RMBS Transactions; Outlook Revised to Stable

May 2, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed the ratings on the following La Hipotecaria cross-border residential mortgage backed security (RMBS) transactions:

La Hipotecaria Panamanian Mortgage Trust 2010-1

--$72 million trust 2010-1 certificates at 'AAAsf'.

La Hipotecaria El Salvadorian Mortgage Trust 2013-1

--$33.75 million series 2013-1 certificates at 'AAAsf'.

The Rating Outlook is revised to Stable from Negative for both transactions.

KEY RATING DRIVERS

The rating affirmations reflect the credit quality of the guaranty provider, Overseas Private Investment Corporation (OPIC), which is backed by the full faith and credit of the United States of America ('AAA'/Outlook Stable). On March 21, 2014, Fitch affirmed the sovereign's long-term foreign and local currency Issuer Default Ratings (IDR) at 'AAA' with Stable Outlooks. In addition, the affirmation of the ratings assigned to the certificates reflects the solid performance of their respective underlying transactions.

RATING SENSITIVITIES

The certificates' ratings are sensitive to changes in the credit quality of the U.S. sovereign as OPIC is an agency of the U.S., and may be sensitive to the performance of the certificates' respective underlying notes.

TRANSACTION SUMMARY

The series 2010-1 certificates issued by La Hipotecaria Panamanian Mortgage Trust 2010-1 are a pass-through of 83% of the series A senior notes issued by La Hipotecaria Tenth Mortgage-Backed Trust. The $86 million series A senior notes are backed by a portfolio of residential mortgages originated by Banco La Hipotecaria S.A. to low-mid income individuals in the Republic of Panama. The series 2010-1 certificates benefit from a financial guaranty by OPIC guaranteeing timely payment of interest and ultimate payment of principal on the certificates.

The series 2013-1 certificates issued by La Hipotecaria El Salvadorian Mortgage Trust 2013-1 are a pass-through of 89% of the series A senior notes issued by La Hipotecaria Eleventh Mortgage-Backed Notes Trust. The $37.8 million series A senior notes are backed by residential mortgages made to lower-middle-income borrowers in El Salvador by La Hipotecaria, S.A. de C.V. The series 2013-1 certificates benefit from a financial guaranty by OPIC guaranteeing timely payment of interest and ultimate payment of principal on the certificates.

La Hipotecaria, S.A. de C.V. (El Salvador) is a subsidiary of Banco La Hipotecaria S.A. (Panama), a subsidiary of La Hipotecaria (Holding), Inc., which is domiciled in the British Virgin Islands.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating Criteria for RMBS in Latin America' (Feb. 13, 2014);

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 13, 2014);

--'Criteria for Rating Securitizations in Emerging Markets' (June 27, 2013).

Applicable Criteria and Related Research:

Rating Criteria for RMBS in Latin America

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732815

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707155

Criteria for Rating Securitizations in Emerging Markets

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=711605

Additional Disclosure

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Gregory Lane

Associate Director

+1 312-606-2304

Fitch Ratings, Inc.

70 W. Madison St.

Chicago, IL 60602

or

Secondary Analyst

Santiago Toro

Analyst

+57 1-326-9999

or

Committee Chairperson

Greg Kabance

Managing Director

+1 312-368-2052

or

Media Relations

Elizabeth Fogerty, New York, +1 212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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