New York, April 13, 2005 -- MOODY'S ASSIGNS Aaa COUNTERPARTY RATING TO K2 CORPORATION AND AFFIRMS
RATINGS OF VARIOUS DEBT PROGRAMMES
In London, Moody's has assigned a Aaa counterparty rating to K2
Corporation ("K2") Moody's believes that the financial resources of K2
Corporation assure that the expected loss faced by a counterparty under
various transactions, including credit derivatives, interest
rate and currency
hedges, is consistent with the experience of investors in Aaa-rated
Additionally, Moody's has affirmed the ratings assigned to the various
debt programmes of K2 Corporation and K2 (USA) LLC as follows:
Prime-1 to the $6,000,000,000 Euro
commercial paper programme of K2;
Aaa and Prime-1 to the $6,000,000,000
Euro Medium Term Note programme of K2;
Prime-1 to the $15,000,000,000
U.S. commercial paper program of K2 (USA) LLC; and
Aaa and Prime-1 to the $15,000,000,000
U.S. Medium Term Note program of K2 (USA) LLC.
For further details, please see Moody's press release dated April
THE RATINGS OF THE FOLLOWING ABCP PROGRAMS WERE AFFIRMED BY MOODY'S AT
PRIME-1 DURING THE PERIOD APRIL 5, 2005 THROUGH APRIL 11,
CALYON'S ATLANTIC INCREASES INTEREST IN TWO EXISTING TRADE RECEIVABLE
Atlantic Asset Securitization Corporation ("Atlantic"), a partially
supported, multiseller ABCP program sponsored by Calyon (Aa2/Prime-1/C),
has increased its interest in two existing transactions. The first
transaction was a $225 million co-purchased trade receivable
facility with Wachovia Bank's Blue Ridge Asset Funding Corp.
The facility finances receivables originated by an investment-grade-rated
managed services company. Atlantic increased its interest in the
facility from $100 million to $112.5 million.
Along with the increase in facility size, the transaction was amended
to include minor changes to the eligibility requirements as well as a
lowering of the required reserves, which resulted in an increased
advance rate. To date, the facility's performance has been
fairly stable with defaults averaging 4% and total reserves averaging
The second transaction was a $150 million trade receivable facility
for an unrated subsidiary of an investment-grade-rated agricultural
company. Atlantic's commitment in this facility increased
from $100 million to $150 million. The increase in
facility size was to accommodate an additional seller in the facility.
Although the new receivables slightly increased the level of defaults
and delinquencies, the facility remains sufficiently credit enhanced.
To date, defaults averaging 2% have been supported by total
reserves averaging 14%, subject to an 8% floor.
Atlantic currently has $5.4 billion in purchase commitments
and $519 million in program-level credit enhancement.
MIZUHO'S JADE CAPITAL AMENDS PROGRAM STRUCTURE
Moody's has affirmed the Prime-1 rating of Jade Capital Corporation's
("Jade") ABCP, following the program amendment that allows for the
issuance of paperless securities ("Paperless CP"). Artemis is a
partially supported, multiseller ABCP program jointly sponsored
by Bayerische Hypo- und Vereinsbank AG ("HVB",
rated A3/Prime-1/D+) and Mizuho Corporate Bank, Ltd.
(A1/Prime-1/D-). Jade has the ability to issue ABCP
in both the U.S. and Japanese ABCP markets. The proceeds
from the issuance of ABCP are used to purchase primarily yen-denominated
trade receivables, promissory notes, and loan receivables
or beneficial interests backed by assets from various sellers.
With this amendment, Artemis now has the ability to issue Paperless
CP as well as ABCP in the form of promissory notes. Such paperless
issuance is common in U.S.-based ABCP programs.
For further details, please see Moody's press release dated
April 11, 2004.
BNP PARIBAS' STARBIRD AND CALYON'S ATLANTIC ACQUIRE INTEREST IN $350
MILLION TRADE RECEIVABLE FACILITY
Starbird Funding Corp. ("Starbird") and Atlantic Asset Securitization
Corporation ("Atlantic") have acquired an interest in a $350 million
trade receivable facility. Starbird, a partially supported,
multiseller ABCP conduit sponsored by BNP Paribas (Aa2/Prime-1/B+),
has acquired a $150 million interest, while Atlantic,
a partially supported, multiseller ABCP program sponsored by Calyon
(Aa2/Prime-1/C), has acquired a $100 million interest
in the facility. ABN AMRO Bank's Windmill Funding Corp.
is also a co-purchaser of the facility with a $100 million
Originated by a Ba2-rated company, the receivables are generated
from the sale of gasoline, heating oil, diesel fuel and jet
fuel to wholesale distributors. The facility benefits from a minimum
of 15% transaction-specific credit enhancement in the form
of overcollateralization, which adjusts dynamically depending upon
asset performance. Starbird's interest is partially supported
by a liquidity facility provided by SunTrust Bank and Atlantic's
interest is supported by a liquidity facility provided by Calyon.
With this transaction, Starbird's and Atlantic's program-level
credit enhancement were increased by 10% of their respective interests
in the facility. Currently, Starbird has about $7.85
billion in total purchase commitments and $528.8 million
in program-level credit enhancement. Atlantic has about
$5.4 billion in purchase commitments and $519 million
in program-level credit enhancement.
ROYAL BANK OF SCOTLAND'S TAGS ADDS $1 BILLION AUTO LOAN FACILITY
Thames Asset Global Securitization No.1, Inc. ("TAGS"),
a partially supported, multiseller conduit sponsored by The Royal
Bank of Scotland plc (Aa1/Prime-1/A-), has added a
$1 billion auto loan facility. The underlying receivables
consist of prime retail loans originated by an investment-grade-rated
captive finance subsidiary of a major U.S. automotive manufacturer.
The facility benefits from 6.75% transaction-specific
credit enhancement, which is comprised of 3.25% overcollateralization,
3% excess spread, and a fully funded non-declining
cash collateral reserve account sized at 0.50% of TAGS'
investment. In addition, the transaction benefits from an
ABCP cease issuance upon the trigger of an asset deficiency test for any
month. This transaction is partially supported by a liquidity facility
is provided by Prime-1-rated RBS.
With this transaction, TAGS was required to increase its program-level
credit enhancement by 5% of outstanding ABCP issued with respect
to this transaction. TAGS is now authorized to issue up to $15
billion of ABCP.
THE RATING OF THE FOLLOWING ABCP PROGRAM WAS WITHDRAWN DURING THE PERIOD
APRIL 5, 2005 THROUGH APRIL 11, 2005:
H2O S.A. RATING WITHDRAWN
At the issuer's request, Moody's has withdrawn the Prime-1
rating of H2O S.A., a partially supported, multiseller
ABCP programme sponsored by Calyon (Aa2/Prime-1/C). As of
31 March, 2005 all outstanding ABCP has been repaid in full and
no further ABCP will be issued under the programme.
For a more detailed description of these ABCP programs, see Moody's
website at <A href="http://www.moodys.com">http://www.moodys.com</A>
Structured Finance Group
Moody's Investors Service
MOODY'S ABCP RATING ACTIONS FOR THE SEVEN-DAY PERIOD ENDED APRIL 11, 2005
Structured Finance Group
Moody's Investors Service