Colombian RMBS Seen Placed Locally in 2008: Fitch

The Colombian MBS market will stay on track this year, according to Fitch, which says Titulizadora Colombia will securitize the bulk of its portfolio. Local markets are the focus, but the agency also sees potential in cross-border. A consumer loan deal from BBVA that was rated last year is expected to come early in 2008, marking the first deal of its kind from the Spanish bank in Colombia. Fitch notes interest in these types of deal from other banks as well as utility companies, since they finance household appliances through their billing systems. Infrastructure in Colombia is another sector where Fitch sees a positive trend, amid increased national development plans. “This will allow local and international investors to utilize financial structures that consider some kind of guarantee to help mitigate risks related to these projects,” says the agency. Meanwhile in Peru, favorable macro developments, coupled with a pipeline of project-related deals, should continue to boost ABS, according to Fitch.