New York, May 20, 2004 -- THE RATINGS OF THE FOLLOWING ABCP PROGRAMS WERE AFFIRMED BY MOODY'S AT PRIME-1 DURING THE PERIOD MAY 12, 2004 THROUGH MAY 18, 2004:MOODY'S ABCP RATING ACTIONS FOR THE SEVEN-DAY PERIOD ENDED MAY 18, 2004
SEVERAL CONDUITS ENTER INTO $5 BILLION STUDENT LOAN AND STUDENT LOAN ABS FACILITY
Several conduits have co-purchased a $5 billion facility backed by student loans and student loan asset-backed securities ("ABS"). The student loans are originated by a major public issuer of student loan-backed securities.
The collateral is predominantly student loans, while the student loan ABS portion may be 15% of the maximum deal size. Student loan ABS must be rated at least A2 to be included in the facility. Also, concentration limits restrict the proportions of the types of loans that may be added. There is no time limitation for the holding of the loans or ABS in the facility.
The conduits' liquidity facilities advance against the portion of the loans that is guaranteed by U.S. government agencies and subtracts from funding only the non-guaranteed, defaulted portion of the loans. The liquidity facilities will fund against student loan ABS as long as the ABS is rated at least C1.
Varying levels of credit enhancement cover all student loans and securities. Transaction-specific credit enhancement also includes a 0.25% reserve account held against all of the loans.
The conduit participants include Barclays' (Aa1/Prime-1/A-) Sheffield Receivables Corp., ABN AMRO's (Aa3/Prime-1/B) Amsterdam Funding Corp. and Windmill Funding Corp; Bank One's (Aa2/Prime-1/B+) Preferred Receivables Funding Corp. ("PREFCO") and Falcon Asset Securitization Corp.; Bank of America's (Aa1/Prime-1/A-) Receivables Capital Company, LLC; and Deutsche Bank's (Aa3/Prime-1/B-) Gemini Securitization Corp., LLC; Saratoga Funding Corp., LLC, Tahoe Funding Corp., LLC, and Sedona Capital Funding Corp., LLC.
SOCIETE GENERALE'S BARTON ACQUIRES $250 MILLION INTEREST IN EXISTING DEALER FLOORPLAN LOAN FACILITY
Barton Capital Corporation ("Barton"), a partially supported, multiseller conduit administered by Société Générale (Aa3/Prime-1/B) has purchased a $250 million interest in a Class A variable funding note ("VFN") of an existing loan facility established by an A3-rated commercial finance company. The revolving loan facility is backed by dealer floorplan receivables. The facility is currently financed with three other conduits, Bank One's Preferred Receivables Funding Corp. ("PREFCO"), WestLB's Paradigm Funding LLC, and Barclays' Sheffield Receivables Corp.
The Class A VFN is supported by a minimum of 8% transaction-specific credit enhancement in the form of subordination. In addition, Barton's program-level credit enhancement was increased by 8% of this purchase.
Barton is currently authorized to issue up to $15 billion of ABCP.
DRESDNER'S BEETHOVEN ADDS $300 MILLION TRADE RECEIVABLE FACILTIY
Beethoven Funding Corp. ("Beethoven"), a partially supported, multiseller ABCP conduit sponsored and administered by Dresdner Bank AG (A1/Prime-1/C-), has acquired a $300 million trade receivable facility. The receivables are originated by an unrated gas utility and distribution company, whose parent is rated Baa2.
Transaction-specific credit enhancement is based on a dynamic formula that responds to changes in both dilution and defaults, and has averaged approximately 21% with a minimum of 10%. This transaction is partially supported through a liquidity facility provided by Dresdner. With this transaction, Beethoven's program-level credit enhancement increased by 10% of its commitment.
Beethoven is now authorized to issue approximately $4.5 billion of ABCP.
CDC'S EIFFEL ACQUIRES $180 MILLION INTEREST IN Aaa-RATED NOTE
Eiffel Funding LLC ("Eiffel"), a partially supported, multiseller conduit sponsored by CDC Financial Products (Aaa/Prime-1), has acquired a $180 million interest in a Aaa-rated note backed by rental car leases. The $180 million note benefits from a surety bond provided by Aaa-rated MBIA.
A liquidity facility provided by CDC supports this transaction and will fund against outstanding ABCP so long as the surety provider does not default on its obligations under this transaction. Eiffel is currently authorized to issue over $6 billion of ABCP.
BANK OF NOVA SCOTIA'S LIBERTY STREET REMOVES FULL LIQUIDITY SUPPORT FROM $125 MILLION AUTO LOAN WAREHOUSE FACILITY
Liberty Street Funding Corporation ("Liberty Street"), a partially supported, multiseller ABCP program sponsored by Bank of Nova Scotia (Aa3/Prime-1/B), has removed full liquidity support from a $125 million auto loan warehouse facility that was acquired by the conduit in July 2001. The facility is used to finance prime retail installment auto loans originated by an unrated U.S.-based retailer of used vehicles.
This transaction is now partially supported through a liquidity facility provided by Bank of Nova Scotia. The liquidity facility will not fund to the extent that the outstanding principal balance of defaulted receivables exceeds the transaction-specific credit enhancement. The facility benefits from transaction-specific credit enhancement in the form of a minimum of 2.75% overcollateralization and 1% reserve fund. In addition, the facility benefits from performance trigger events, as well as an ABCP tenor limitation of 180 days. If any of these trigger events occurs, the facility can no longer purchase new receivables and no further ABCP can be issued
Liberty Street's program-level credit enhancement was increased by 10% of the facility limit. Liberty Street is currently authorized to issue up to $8 billion of ABCP.
ROYAL BANK OF CANADA'S OLD LINE FUNDING REMOVES FULL SUPPORT FROM ITS $500 MILLION INTEREST IN NOTE ISSUED BY A CREDIT CARD MASTER TRUST
Old Line Funding LLC ("Old Line"), a partially supported, multiseller ABCP conduit sponsored by Royal Bank of Canada (Aa2/Prime-1/B+) has removed full support from its $500 million interest in an A2-rated Class A variable funding note ("VFN") issued by a credit card master trust. The VFN benefits from 22.5% transaction-specific credit enhancement in the form of subordination and 10% incremental program-level credit enhancement. The transaction is now partially supported through liquidity.
Old Line is authorized to issue up to $12 billion of ABCP. Currently, Old Line has about $9.57 billion in total purchase commitments with $1.11 billion in program-level credit enhancement.
DRESDNER BANK'S SILVER TOWER SHARES TWO EXISTING TRANSACTIONS WITH CONDUIT CO-PURCHASERS
Silver Tower Funding Limited ("Silver Tower"), a partially supported, multiseller ABCP conduit sponsored by Dresdner Bank AG (A1/Prime-1/C-), has assigned portions of its interests in two existing transactions to other ABCP conduits.
The first transaction is a Euro 1.224 billion facility originally financed with Silver Tower. Antalis S.A., Mont Blanc Capital Corp. ("Mont Blanc"), and Silver Tower each now finance a Euro 408 million interest in the facility. Antalis S.A. is a partially supported, multiseller conduit administered by Société Générale (Aa3/Prime-1/B), while Mont Blanc is a partially supported, multiseller conduit administered by ING Bank N.V. (Aa2/Prime-1/B+). All three conduits make advances under a commissioning agreement or a note funding agreement to a purchasing company, MORE SouthWest Inc., which finances consumer loan receivables on a revolving basis. The obligors reside in Germany.
MORE SouthWest has transaction-specific credit enhancement in the form of a purchase discount and a cash reserve. Additionally, the transaction benefits from default and delinquency trigger events. Such trigger events result in the termination of receivable purchases followed by either a put to the liquidity facility or a cease issuance of ABCP. Each conduit benefits from a liquidity facility that will fund for non-defaulted receivables.
The second transaction is a Euro 400 million facility that was originally financed with Silver Tower. Silver Tower now shares in the purchase with Giro Lion Funding Limited ("Giro Lion"), a partially supported, multiseller conduit administered by Bayerische Landesbank (Aaa/Prime-1/D+). Giro Lion and Silver Tower each now finance a Euro 188.5 million interest in the facility. In the transaction, both Silver Tower and Giro Lion make advances under a commissioning agreement or a note purchase agreement to a purchasing company, MORE Global Inc., which finances consumer loan receivables on a revolving basis. In addition, there is a Euro 23 million subordinate loan that is jointly provided by Dresdner Bank and Bayerische Landesbank for the benefit of MORE Global. The obligors of MORE Global reside in Germany.
MORE Global has transaction-specific credit enhancement in the form of a 4.3 % purchase discount and a 4.3 % cash reserve. Similar to MORE SouthWest, MORE Global also benefits from default and delinquency trigger events. Such trigger events also result in the termination of receivable purchases followed by either a put to the liquidity facility or a cease issuance of ABCP. Both Silver Tower and Giro Lion benefits from liquidity facilities that will fund for non-defaulted receivables.
With these two transactions, Silver Tower is now authorized to issue Euro 15 billion of ABCP. Antalis is authorized to issue up to Euro 5.3 billion of ABCP, Mont Blanc may issue up to Euro 5 billion of ABCP, and Giro Lion may issue up Euro 4 billion of ABCP.
For a more detailed description of these ABCP programs, see Moody's website 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.