MOODY'S ASSIGNS A PRIME-1 RATING TO NIEUW AMSTERDAM RECEIVABLES CORP ABCP PROGRAM
New York, December 16, 1999 -- Moody's Investors Service assigned a Prime-1 rating to the asset-backed commercial paper (ABCP) of Nieuw Amsterdam Receivables Corp. (NARCO), a newly created, partially supported multiseller program administered by Rabobank Nederland (Aaa/Prime-1/A). NARCO, a special purpose company, organized under the laws of Delaware with limited corporate purpose, is owned by Global Securitization Holdings and managed by Global Securitization Services, LLC (GSS).
NARCO's authorized issuance amount of ABCP will be determined as asset interests are purchased; however, there are no asset interests currently funded by NARCO.
According to Moody's Analyst, Victoria Moreno, NARCO's rating is based on (a) the liquidity support provided by Prime-1 rated banks, (b) the letter of credit issued by Prime-1-rated Rabobank that provides program wide credit enhancement, (c) the ability of Rabobank to act as administrator, (d) Moody's prior review of each of the assets to be purchased by Rabobank, and (e) structural protections incorporated into the program to assure its bankruptcy-remoteness.
Liquidity support for NARCO's ABCP will be in the form of either a Liquidity Asset Purchase Agreement or a Liquidity Loan Agreement, and will provide funds in an amount based on the amount of non-defaulted assets.
The liquidity commitment will not be available if NARCO is bankrupt.
Rabobank will provide a program wide irrevocable and unconditional letter of credit (LOC). The minimum amount of the LOC is sized as the greater of (i) US$100 million, (ii) 10% of the amount of NARCO's outstanding ABCP, excluding ABCP issued to finance assets rated at least Aa2 (highly rated assets), and (iii) 5% of the amount of all of NARCO's outstanding ABCP, including ABCP issued to finance highly rated assets.
A team within Rabobank's Asset-Backed Finance undertakes administration of NARCO. This team has considerable experience in structured finance. GSS, the manager of the program, will also act as the sub-administrator for NARCO.
Rabobank's unsecured long-term indebtedness is rated Aaa, its short obligations Prime-1, and has a bank financial strength rating of A.
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