MOODY'S ABCP RATING ACTIONS FOR THE SEVEN-DAY PERIOD ENDED JANUARY 23, 2006
New York, January 25, 2006 -- MOODY'S PUBLISHES 2005 OUTLOOK AND 2004 REVIEW FOR AUSTRALIAN ABCP MARKET
Moody's Investors Service has published the "2005 Review and 2006 Outlook
Australian Asset Backed Commercial Paper: Steady Growth in a Challenging
Market." In the article, Moody's reports that the Australasian
ABCP market grew 7.2% in 2005, which was driven by
increased funding of mortgage loans, margin loans, commercial
mortgage-backed securities and other assets. Additionally,
structural innovations to "traditional" conduits structures
were seen both in Australia and abroad. The innovations were mostly
targeted at reducing reliance on traditional bank liquidity facilities.
These innovations and complexities offer investors more points of differentiation
when distinguishing conduits.
Meanwhile, the outlook for 2006 is for muted growth as the engine
room of Australian structured finance -- residential mortgages
-- eases off in response to the softer property market.
While issuance volumes may not be particularly newsworthy, further
structural innovations and integration of Australian ABCP programs into
the global market will provide interest.
As such, Moody's expects to see more convergence of the global ABCP
market, whether through Australian assets being funded directly
by off-shore conduits, Australian issuers funding Australian
assets in foreign currencies, or off-shore conduits issuing
For further details, please see Moody's press release dated January
22, 2006. The "2005 Review and 2006 Outlook Australian Asset
Backed Commercial Paper: Steady Growth in a Challenging Market"
Special Report is available on Moody's website, http://www.moodys.com.
THE RATINGS OF THE FOLLOWING ABCP PROGRAMS WERE AFFIRMED BY MOODY'S AT
PRIME-1 DURING THE PERIOD JANUARY 17, 2006 THROUGH JANUARY
ABN AMRO'S AMSTERDAM ADDS $100 MILLION UNRATED SENIOR NOTE
Amsterdam Funding Corp. ("Amsterdam"), a partially
supported, limited post review, multiseller conduit sponsored
by ABN AMRO Bank (Aa3/Prime-1/B), has added a $100
million senior note to its portfolio. The senior note is issued
out of a purchase facility that funds eligible leveraged loans,
corporate bonds, CDOs, CDOs of CDOs and other structured finance
The transaction benefits from various structural protections such as a
liquidity purchase date upon various trigger events. The transaction
is partially supported through a liquidity facility that funds for non-defaulted
assets. The liquidity facility is provided by Prime-1-rated
ABN AMRO and is sized at 104% of Amsterdam's aggregate commitment
With this transaction, Amsterdam's program-level credit
enhancement was increased by 8% of its purchase commitment.
Amsterdam currently has about $11.1 billion in total purchase
commitments with $8.8 billion in outstanding and $353
million in program-wide credit enhancement.
LLOYDS TSB'S CANCARA ADDS USD 750 MILLION TRANSACTION
Cancara Asset Securitisation Limited ("Cancara"), a
partially supported, hybrid conduit sponsored by Lloyds TSB Bank
Plc (Aaa/Prime-1/A), has added a USD 750 million facility
to its portfolio.
Cancara makes advances under a commissioning agreement to a purchasing
company, which purchases Aa1-rated Notes issued by a Trust
and the Notes are backed by a pool of home equity loans from US debtors.
A trigger based on the rating of the Notes being downgraded below A1 will
result in the cessation of ABCP issuance. The maximum tenor of
ABCP is 60 days. This transaction is supported by a liquidity facility
provided by Lloyds TSB Bank PLC. The liquidity facility funds for
the Face Amount of the Notes as long as they are rated above Caa3 by Moody's
or CCC- by S&P.
With this transaction, Cancara's program-level credit
enhancement was increased by 5% of its commitment. Cancara
is now authorized to issue approximately USD15.7 billion of ABCP.
BAYERISCHE LANDESBANK'S GIRO BALANCED ADDS TWO TRANSACTIONS TOTALING $300
Giro Balanced Funding Corp. ("Giro Balanced"), a partially
supported, multiseller conduit sponsored by Bayerische Landesbank
("BayernLB", rated Aa2/Prime-1/D+), has added
two transactions to its portfolio: (i) a $100 million certificate
backed by credit card receivables, and (ii) a $200 million
trade receivable facility.
The $100 million certificate is supported by 6% Letter of
Credit issued by a Aa2/Prime-1-rated financial institution.
This transaction also benefits from structural protections such as an
ABCP cease issuance upon a breach in certain credit triggers, and
a ABCP tenor limitation of 1 month. This transaction is supported
through a liquidity facility provided by Prime-1 rated BayernLB.
The liquidity facility funds for the funding commitment less charge-offs
in excess of the Letter of Credit amount.
The $200 million trade receivable facility is established for a
A3-rated manufacturer. The receivables in the facility are
originated by the subsidiaries of manufacturer. This transaction
is fully supported by a liquidity facility provided by Prime-1
With these transactions, Giro Balanced is now authorized to issue
approximately $7.7 billion of ABCP.
RABOBANK'S NIEUW AMSTERDAM ADDS $300 MILLION ABS FACILITY
Nieuw Amsterdam Receivables Corp. ("Nieuw Amsterdam"), a
partially supported, multiseller ABCP conduit sponsored by Rabobank
Nederland (Aaa/Prime-1/A), has acquired a $300 million
ABS facility. The facility benefits from a financial guarantee
insurance policy provided by Aaa-rated MBIA. A liquidity
facility provided by Rabobank partially supports this transaction.
The liquidity facility funds for maturing ABCP as long as MBIA's
rating does not fall below Caa2, MBIA is not bankrupt, or
a payment default under the policy does not continue for 3 business days.
Nieuw Amsterdam is authorized to issue up to $4.6 billion
of ABCP and has $200 million in program-level credit enhancement.
SUNTRUST'S THREE PILLARS ADDS $145 MILLION LOAN FACILITY
Three Pillars Funding LLC ("Three Pillars"), a partially supported,
multiseller ABCP conduit sponsored by SunTrust Bank (Aa2/Prime-1/B+),
has added a $145 million revolving loan facility to its portfolio.
The facility is backed by the proceeds of structured settlements.
This transaction benefits from 10% incremental program-level
credit enhancement and is fully supported by a liquidity facility provided
by SunTrust and Landesbank Hessen-Thuringen (Aaa/Prime-1/C).
Three Pillars has about $7.79 billion in total purchase
commitments and $707.08 million in program-level
THE RATING OF THE FOLLOWING ABCP PROGRAM WAS WITHDRAWN DURING THE PERIOD
JANUARY 17, 2006 THROUGH JANUARY 23, 2006:
JADE CAPITAL CORPORATION'S RATING WITHDRAWN
In Tokyo, Moody's has withdrawn the Prime-1 rating of Jade
Capital Corporation ("Jade"), a partially supported,
multiseller asset backed commercial paper (ABCP) program sponsored by
Bayerische Hypo- und Vereinsbank AG (A2/Prime-1/D+),
Tokyo Branch and Mizuho Corporate Bank, Ltd. (A1/Prime-1/D+).
The rating action is driven by business reasons.
For a more detailed description of these ABCP programs, see Moody's
website at http://www.moodys.com
Structured Finance Group
Moody's Investors Service
Structured Finance Group
Moody's Investors Service