Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
15 Apr 2005
MOODY'S ASSIGNS DEFINITIVE NATIONAL SCALE RATINGS TO SOUTH AFRICAN AUTO ABS NOTES ISSUED UNDER DOMESTIC MEDIUM TERM NOTE PROGRAMME AUTO SERIES INVESTMENTS LIMITED
Approximately ZAR 1.4 Billion of Debt Securities Affected.
Johannesburg, April 15, 2005 -- Moody's Investors Service has assigned the following definitive National
Scale Ratings ("NSR") to the debt issuance of Auto Series Investments
Limited ("the Issuer"):
- Aaa.za to the ZAR 160,000,000 AS0507 Notes
due 12 April 2025,
- Aaa.za to the ZAR 150,000,000 AS0510 Notes
due 12 April 2025,
- Aaa.za to the ZAR 130,000,000 AS0601 Notes
due 12 April 2025,
- Aaa.za to the ZAR 110,000,000 AS0604 Notes
due 12 April 2025,
- Aaa.za to the ZAR 190,000,000 AS0610 Notes
due 12 April 2025,
- Aaa.za to the ZAR 180,000,000 AS0704 Notes
due 12 April 2025,
- Aaa.za to the ZAR 200,000,000 AS0710 Notes
due 12 April 2025,
- Aaa.za to the ZAR 110,000,000 AS0804 Notes
due 12 April 2025, and
- Aaa.za to the ZAR 170,000,000 AS0810 Notes
due 12 April 2025
Moody's assigned provisional ratings to these notes on 18 March
This is the fifth public term securitisation of BMW Financial Services
(South Africa) Proprietary ("BMW FS"). This transaction benefits
from the same structural features as the most recent Auto Loan Investments
transaction, with some additional changes which have been made in
order to establish a domestic medium term note programme structure.
Moody's believes that these changes do not introduce any incremental
credit risk to investors.
BMW FS sells to the Issuer loan and lease receivables which relate to
financing of new and used BMW and non-BMW vehicles and have been
originated in the ordinary course of business. The Issuer finances
the acquisition of the initial receivables through the issuance of nine
tranches in an initial aggregate amount of ZAR 1,400,000,000
to investors in the South African capital markets. The transaction
also provides for the possibility of further Notes issuance under this
domestic medium term note programme, subject to the availability
of further eligible receivables and confirmations by the Security SPV
and Moody's that this will not negatively affect the rating of the Notes
outstanding. All Notes issued under the domestic medium term note
programme rank pari passu amongst themselves as well as with any existing
The legal final maturity dates of the Notes have been set at 12 April
2025. In addition, each individual note has a different target
maturity date corresponding to its anticipated redemption date,
which has been determined according to the expected prepayment profile
of the assets. To the extent that prepayments are lower than anticipated
and proceeds from the assets are insufficient to redeem any tranche of
Notes at its target maturity date, the issuer may draw on a Note
specific liquidity facility or may use the proceeds from refinancing Notes
to redeem the relevant Notes. Each Note specific liquidity facility
has been sized in an amount equal to the principal amount outstanding
of the relevant tranche of Notes on its target maturity date, and
will only be available on that date. All Note specific liquidity
facilities will be cancelled upon the occurrence of either a put option
trigger event or an event of default and rank in the priority of payments
in such a way so as not to constitute credit enhancement to the Notes.
Moody's has not rated the Notes to their target maturity dates,
but rather to the legal final maturity.
The credit enhancement for the notes is provided through (i) a put option
under which the Issuer can put irrecoverable assets to Rand Merchant Bank,
a division of FirstRand Bank Limited, (Baa1/Prime-2/C)*
(Aa2.za/Prime-1.za)** for a total amount
of ZAR 119,000,000 (equivalent to 8.5%),
(ii) a 1% over collateralisation, and (iii) a ZAR 1.2m
(0.08%) reserve fund built up from excess spread.
The portfolio as of the issue date includes auto financing to 6,184
retail customers, with an average balance of ZAR 228,649.
The majority of the vehicles are BMWs (84%). The weighted
average seasoning of the pool is 9.1 months and most of the obligors
live in Gauteng (60%). The number of balloon loans included
in the portfolio has increased sizeably as compared to previous transactions.
15% of the total portfolio value consists of a 65% residual
value product, not seen in previous transactions. The 65%
residual value product has the additional features of (i) a 65%
guaranteed buy-back offered by the dealership to the obligor at
maturity; and (ii) a 50% guaranteed buy-back offered
by BMW FS to the dealership at maturity, where both (i) and (ii)
are subject to certain restrictions related to the condition and mileage
of the vehicles. Since there is at most 18 months of data available
on these higher residual value loans, Moody's has made conservative
recovery assumptions in its modelling.
The ratings are based on the following positive and less favourable aspects
of the transaction.
Positive features, inter alia, include: (1) Auto Series
Investments is the fifth securitisation of auto loans and auto leases
originated by BMW FS. Previous Auto Loan Investment transactions
are performing in line with expectations; (2) All loans and leases
are required to be current at the effective date, as per the eligibility
criteria; (3) BMW FS has provided detailed historical arrears,
default and recovery data; however, only 18 months of data
was provided for loans with residual values exceeding 50%.
Default information was provided on a static basis grouped into monthly
cohorts. The data underlined a steadily improving performance linked
to the introduction of new management, new underwriting and collection
guidelines and procedures in 1998; (4) The credit enhancement available
over time to the Notes; (5) The transaction benefits from a ZAR 35
million programme wide liquidity facility provided by RMB, which
is available to cover shortfalls in payments with respect to senior fees
and interest on the Notes throughout the life of the transaction;
(6) Moody's has reviewed BMW FS operations and believes that management,
procedures and systems permit BMW FS to act as servicer under this transaction.
Less favourable aspects, amongst others, include: (1)
There are interest rate mismatches between the Prime rate received under
the loans and leases and the Jibar Rate paid under the Notes. In
order to mitigate this interest rate risk, the issuer enters into
a basis swap with RMB on closing of the transaction; (2) Although
losses in the portfolio which exceed the put option amount plus trapped
excess spread and over collateralisation are allocated pari passu and
pro rata on the Notes, the principal repayment on the Notes is done
in full sequential order prior to the occurrence of a put option trigger
event or event of default. Therefore the longest outstanding class
of Notes will have a higher expected loss relative to other Notes.
This is partly mitigated by the inclusion of a switch to pro rata trigger
upon the occurrence of a put option trigger event; (3) In the late
1990s, BMW experienced in its total portfolio high loss levels and
a rather high volatility. The performance has improved from this
period onward, as pointed out above. Furthermore, Moody's
decided to exclude the high losses in 1998 from the determination of the
expected cumulative loss for the securitised pool. The volatility
assumption applied in the determination of the lognormal distribution,
however, was stressed to take the whole spectrum into account;
(4) About one fifth of the total portfolio value is made up by loans with
balloon payments in excess of 50%, for which only limited
historical data is available. This introduces uncertainty as to
the extent of future losses on these types of products. Moody's
has made conservative assumptions with regard to expected recoveries on
high residual value products.
The ratings address the expected loss posed to investors by the legal
final maturity of the Notes. In Moody's opinion, the structure
allows for timely payment of interest and ultimate payment of principal
at par on or before the rated final legal maturity date. Moody's
ratings address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have
a significant effect on yield to investors.
To obtain a copy of the New Issue Report please contact Moody's Client
Service Desk in
London at +44 (0) 20 7772 5454 or visit our website at www.moodys.com.
* The ratings indicated are foreign currency bank deposit Global Scale
** The ratings indicated are National Scale Ratings.
Structured Finance Group
Structured Finance Group
No Related Data.
© 2019 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 INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 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 MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.
CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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 rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.