MOODY'S ABCP RATING ACTIONS FOR THE FOURTEEN DAY PERIOD ENDED JANUARY 17, 2002
THE RATINGS OF THE FOLLOWING ABCP PROGRAMS WERE CONFIRMED BY MOODY'S DURING THE FOURTEEN DAY PERIOD ENDED JANUARY 17, 2002:
BAYERISCHE HYPO-UND VEREINSBANK'S ARABELLA ADDS EURO 80 MILLION TRADE RECEIVABLES TRANSACTION
Arabella Funding, LTD., a Prime-1 rated, multiseller, partially supported ABCP conduit sponsored by Aa3/Prime-1-rated Bayerische Hypo-und Vereinsbank AG (HVB), has closed a Euro 80 million revolving trade receivables transaction. The receivables are originated by four subsidiaries of an unrated German automotive parts supplier. The portfolio includes receivables owed by five large obligors. The obligors benefit either directly or indirectly through their parent company from high investment-grade ratings.
Pool-specific credit enhancement consists of a seller cash deposit of 4%, as well as an insurance policy which covers up to 60% of the purchased receivables amount. The policy is provided by an insurance company which is rated Aa2/Prime-1 Program-wide credit enhancement is provided through a 5% letter of credit from HVB.
This partially supported transaction benefits from very tight delinquency and default triggers, both set at 0%. The triggers, if hit, lead to a stop purchase of new receivables and a cease issuance of ABCP. The liquidity facility is provided by the London branch of Prime-1-rated HVB.
With this addition, Arabella is now authorized to issue up to approximately Euro 1.9 billion of ABCP.
AIGFP'S NYALA FUNDING AMENDS PROGRAM TO ISSUE EXTENDABLE NOTES
Nyala Funding LLC ("Nyala"), a fully-supported, single-seller program sponsored by AIG Financial Products Corp ("AIGFP"), has amended its program to allow for the issuance of secured liquidity notes ("SLNs") that may be converted on their expected maturity date into extended maturity notes ("EMNs"). Nyala has also increased its program limit from $1.5 billion to $5 billion. Both the ABCP and EMNs are fully supported by a total rate of return swap provided by Prime-1-rated AIGFP.
There is no restriction, other than the program limit, as to the proportion of SLNs versus ABCP that Nyala may isssue. SLNs may be issued at a discount or on an interest bearing basis. They have an expected maturity date of up to 180 days from the issuance date. If, on the expected maturity date, there are insufficient funds to pay the maturing SLNs, then the SLNs are automatically converted into EMNs with a final maturity date of 180 days from the expected maturity date of that class of SLNs. The initial principal balance of the EMNs is equal to the face amount of the SLNs on their expected maturity date (which is the date of the conversion). The total rate of return swap fully supports payment of the EMNs on their maturity date.
Nyala is authorized to issue up to $5 billion in ABCP and SLNs.
WESTLB'S PARADIGM FUNDING ACQUIRES TWO INTERESTS TOTALING $619.53 MILLION
Westdeutsche Landesbank Girozentrale's (WestLB) Paradigm Funding LLC (Paradigm), a partially supported, multiseller conduit, acquired a $600 million interest in a $900 million facility that purchases tax refund anticipation loans originated by an unrated state-chartered bank. Paradigm also purchased a combined $19.53 million interest in two aircraft loan certificates backed by commercial aircraft leased by an investment-grade airlines company. Each of the transactions is supported by liquidity provided by WestLB. Currently, Paradigm has about $5.5 billion in ABCP outstanding, with $365.7 million in program-level credit enhancement. Paradigm is now authorized to issue about $ 7.75 billion of ABCP.
GECC'S REDWOOD RECEIVABLES ADDS $75 MILLION TRADE RECEIVABLES POOL
Redwood Receivables Corp., a General Electric Capital Corp. sponsored and administered ABCP program, added a $75 million, 5-year revolving trade receivables facility. The facility is backed by receivables generated by a B2-rated, diversified manufacturer for an array of products which are distributed to the automotive, defense, aerospace and construction markets, as well as other industrial markets. Pool-specific credit enhancement, in the form of dynamic asset overcollateralization, is equal to a minimum of 15% of eligible receivables. The program-level letter of credit will also increase by at least 5% of outstandings and will fluctuate, depending on portfolio performance, to a maximum of 25%. With the addition of this asset pool, Redwood is now authorized to issue up to $2.62 billion of ABCP.
ROYAL BANK OF SCOTLAND'S TAGS ABCP PROGRAM ADDS TWO TRANSACTIONS: ONE A £175 MILLION FINANCING OF UK INSTALLMENT LOANS AND THE OTHER A £172.5 MILLION UK PROJECT FINANCE TRANSACTION
Thames Asset Global Securitization No. 1, Inc. (TAGS), a Prime-1-rated, partially supported multiseller conduit sponsored by The Royal Bank of Scotland, has funded a £175 million loan facility which finances a revolving portfolio of installment loans. A UK non-bank financing company originates the loans, which in turn finance insurance premiums. The transaction benefits from a) dynamic pool-specific credit enhancement subject to a floor amount of 5% of the purchased loans and b) a loss-to-liquidation ratio performance trigger of 1.5% that, if hit, results in the cease issuance of ABCP against this asset pool. The maturity of outstanding ABCP is limited to 3 months.
TAGS has also funded a £ 172.5 million loan facility in respect of a UK project financing. The transaction benefits from structural protection through performance triggers linked to the project, which if hit, would result in the cessation of issuance of ABCP for this pool. Furthermore, the maturity of outstanding ABCP is limited to 1 or 3 months, respectively. Program-wide credit enhancement has been increased by 5% of the outstanding ABCP in this pool through a cash collateral account provided by RBS.
These deals are both partially supported by liquidity facilities provided by The Royal Bank of Scotland (Aa2/Prime-1) with the possibility of syndication to other Prime-1- rated banks.
With the addition of these two transactions, the TAGS conduit is now authorized to issue approximately $3.8 billion of ABCP.
For a more detailed description of these ABCP programs, see Moody's GLOBAL ASSET-BACKED COMMERCIAL PAPER MARKET REVIEW, which is published quarterly. This information is also available at http://www.moodys.com.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at
www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
