MOODY'S ASSIGNS PROSPECTIVE RATINGS TO NINE CLASSES OF NOTES TO BE ISSUED BY PARTHOLON CDO I PLC.
Euro 325 Million of Debt Securities Affected.
Paris, August 01, 2003 -- Moody's has assigned preliminary credit ratings to the notes to be issued
by Partholon CDO I Plc, an Irish special purpose company.
The ratings are as follows:
(P)Aaa to the Euro 233,235,000 Class A-1 Floating Rate
Notes due 2016,
(P)Aaa to the Euro 10,000,000 Class A-3 Zero Coupon
Notes due 2016,
(P)Aa3 to the Euro 30,845,000 Class B-1 Floating Rate
Notes due 2016,
(P)Aa3 to the Euro 1,000,000 Class B-3 Zero Coupon
Notes due 2016,
(P)Baa3 to the Euro 26,325,000 Class C-1 Floating Rate
Notes due 2016, and
(P)Baa3 to the Euro 5,000,000 Class C-2 Fixed Rate
Notes due 2016.
Euro 47,250,000 Subordinated Notes will be issued but will
not be rated by Moody's.
The ratings of the Class A-1 and Class B-1 notes address
the timely payment of interest and the ultimate payment of principal before
the legal final maturity date of the notes in 2016.
The ratings of the Class A-3 and Class B-3 notes address
the ultimate repayment of an amount equal to the Redemption Price of such
notes, being equal to their principal amount of 10,000,000
Euro and 1,000,000 Euro respectively, or to their Redemption
Value in case of Event of Default of Optional redemption,on or before
the legal final maturity date of the notes in 2016.
The ratings of the Class C-1 and C-2 notes address the ultimate
payment of interest and principal at par on or before the legal final
maturity date of the notes in 2016.
These prospective ratings are based upon:
1. An assessment of the eligibility criteria and portfolio guidelines
applicable to the future additions to the portfolio;
2. The protection against losses through the subordination of the
more junior classes of notes to the more senior classes of notes;
3. The currency swap transactions, which insulate Partholon
CDO I Plc from the volatility of the foreign currency exchange rates,
for hedged Non-Euro obligations;
4. The expertise of Bank of Ireland as loan manager; and
5.The legal and structural integrity of the issue.
Moody's Investors Service has also assigned the following prospective
ratings :
(P)Aaa to the Euro 10,000,000 Class P Combination Notes due
2016,
(P)Aa3 to the Euro 1,000,000 Class Q Combination Notes due
2016, and
(P)Baa2 to the Euro 8,000,000 Class S Combination Notes due
2016.
The prospective rating of the Class S Combination Notes addresses the
ultimate repayment of the Rated Balance in respect of such Combination
Notes on or before the legal maturity date (in 2016), where the
"Rated Balance" is equal, at any time, to the principal amount
of Combination Notes on the Issue Date (Euro 8,000,000) minus
the aggregate of all payments made from the issue date to such date,
either through interest or principal payments. It is not an opinion
about the ability of the issuer to pay interest.
The prospective rating of the Class P and Q Combination Notes address
the ultimate repayment of an amount equal to the Redemption Price of such
notes, being equal to their principal amount of 10,000,000
Euro and 1,000,000 Euro respectively, or to their Redemption
Value in case of Event of Default of Optional redemption . It is
not an opinion about the ability of the issuer to pay interest.
The Class P Notes are combination notes which represent an ownership of
a Euro 3,310,000 principal amount of the Subordinated Notes
and of a Euro 10,000,000 principal amount of the Class A-3
Zero Coupon Notes issued by Partholon CDO I Plc.
The Class Q Notes are combination notes which represent an ownership of
a Euro 345,000 principal amount of the Subordinated Notes and of
a Euro 1,000,000 principal amount of the Class B-3
Zero Coupon Notes issued by Partholon CDO I Plc.
The Class S Notes are combination notes, which represent an ownership
of a Euro 2,800,000 principal amount of the Subordinated Notes
and of a Euro 5,200,000 principal amount of the Class B-1
Floating Rate Notes issued by Partholon CDO I Plc.
The ratings on the Class P, Q and S Notes reflect:
(a) For the class P Notes, the credit quality of the Class A-3
Zero Coupon Notes issued by Partholon CDO I Plc, rated (P) Aaa;
(b) For the class Q Notes, the credit quality of the Class B-3
Zero Coupon Notes issued by Partholon CDO I Plc, rated (P) Aa3;
(c) For the class S Notes, the credit quality of the Class B-1
Floating Rate Notes issued by Partholon CDO I Plc, rated (P) Aa3;
(d) The analysis of the cashflows of the Subordinated Notes issued by
Partholon CDO I Plc; and
(e) The legal and structural integrity of the issue.
This transaction is a high yield collateralised loan obligation related
to an Euro 340,900,000 portfolio of mostly European senior
and mezzanine loans (with a predominance of senior secured loans).
This portfolio is dynamically managed by Bank of Ireland's acquisition
finance team. This portfolio will be partially acquired at closing
date and partially during the 275-day ramp-up period in
compliance with portfolio guidelines (which include, among other
tests, diversity score, weighted average rating factor and
weighted average spread). Thereafter, the portfolio of loans
will be actively managed and the portfolio manager will have the option
to direct the issuer to buy or sell loans. Any addition or removal
of loans will be subject to a number of portfolio criteria.
Moody's issues prospective ratings in advance of the final sale of financial
instruments, but these ratings only represent Moody's preliminary
credit opinions. Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavour to assign definitive
ratings. A definitive rating (if any) may differ from a prospective
rating.
To obtain a copy of Moody's Pre-Sale Report on this transaction,
please contact Moody's client service desk in London at +44 20 7772
5454 or visit www.moodys.com
London
Frederic Drevon
Managing Director
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Paris
Lisa Goldbaum
Analyst
Structured Finance Group
Moody's France S.A.
JOURNALISTS: 33 1 53 43 93 78
SUBSCRIBERS: 44 20 7772 5454