Lehman Brothers' new Thai securitization may not be the catalyst for an outpouring of securitizations from the region, but it has certainly served to push this market's progression one step forward.

GT Stars II is the first rated securitization transaction from Thailand, although there have been earlier transactions, including GT Stars1. "In terms of Securitization of this type of asset in the region, the transaction does signify progress in that there is no recourse to the originator or seller of the underlying assets," said Ben McCarthy, a Fitch Ratings analyst in the Hong Kong office. "The repayment of the bonds will rely purely on the cash flows from the underlying assets. This is in contrast to some of the Korean deals that have relied on put options to the seller for credit enhancement."

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