CORRECTION TO 3/8 RELEASE: MOODY'S ASSIGNS PROVISIONAL RATINGS TO CHUO MITSUI TRUST BANK'S RESIDENTIAL LOAN RECEIVABLES SECURITIZATION (IN THE DESCRIPTION OF "ARRANGER ")
Tokyo, March 09, 2004 -- Moody's Investors Service has assigned provisional ratings to Chuo Mitsui Trust Bank Residential Loan Receivables No. 1 Trust Senior Beneficial Interests, worth JPY 180.0 billion, to be issued on March 29, 2004.
The provisional ratings address the expected loss posed to investors by the legal final maturity date. The structure allows for timely payments of dividend (in scheduled amounts, on scheduled payment dates), and ultimate repayment of principal by the legal final maturity date.
Moody's issues provisional ratings in advance of the final sale of the securities. These ratings, however, only represent Moody's preliminary credit opinions. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the trust beneficial interests. Definitive ratings may differ from provisional ratings. The provisional ratings are based on the information received as of March 5, 2004.
The complete ratings action is as follows,
Chuo Mitsui Trust Bank Residential Loan Receivables Trust No. 1 Senior Beneficial Interests
JPY 180.0 billion Fixed-rate Senior Beneficial Interests rated (P)Aaa
Expected Closing Date: March 29, 2004
Legal Final Maturity Date: May 10, 2040
Seller/ Servicer: The Chuo Mitsui Trust and Banking Co., Ltd.
Asset Trustee: Mitsui Asset Trust and Banking Co., Ltd.
Arranger: Nikko Citigroup Limited
Joint Private Placement Dealer: Nikko Citigroup Limited/ Daiwa Securities SMBC Co., Ltd.
RATING OPINION SUMMARY
The provisional ratings are based on the following factors:
(1) Integrity of legal structure,
(2) The credit quality of the underlying residential loan receivables pool
(3) The level of over collateralization provided by the senior-subordinated structure, which is available to cover credit risks and negative carry risk
(4) The level of liquidity support, provided in the form of the cash reserve, to be used when the servicer is replaced
(5) The existence of structural protection, which provides for the appointment of a back-up servicer on the occurrence of certain events
The seller and servicer, The Chuo Mitsui Trust and Banking Co., Ltd., is an affiliate of Mitsui Trust Holdings, Inc., a holding company established in 2002. As of March 2003, it had about approximately 4,900 employees and approximately 350 billion in capital.
Moody's had a meeting with The Chuo Mitsui Trust and Banking Co., Ltd. and conducted a research on the originator's business franchise and underwriting criteria. Moody's also completed a review of each servicer's operations and considers each to be fully capable of servicing the pool.
Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold or sell securities.
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