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.
09 Oct 2003
MOODY'S RATES WHOLE AUTO LOAN TRUST 2003-1 PRIME AUTO LOAN SECURITIZATION
Approximately $2.84 Billion of Asset-Backed Securities Rated.
New York, October 09, 2003 -- Moody's Investors Service has assigned a rating of Prime-1 to the
class A-1 money market tranche and long-term ratings of
Aaa, A1, Baa1 and Ba3 to the remaining classes of notes issued
in the term securitization of prime automobile loans by Whole Auto Loan
Trust 2003-1 (WALT 2003-1). The ratings are based
on the quality of the underlying automobile loans and their expected performance;
the strength of the transaction structure; the enhancement provided
by subordination, overcollateralization and available excess spread;
and the ability of the various parties performing servicing functions.
In addition, the Prime-1 rating of the class A-1 notes
is based on the expected cashflows on the underlying receivables during
the collection periods prior to the class A-1 final maturity date.
This is the second such transaction to be executed by Bear Stearns and
its affiliates. The first, Whole Auto Loan Trust 2002-1,
closed in December 2002. The key structural elements of the two
transactions are identical. However, WALT 2003-1 has
the distinction of being the first securitization of collateral sourced
from each of the "Big Three" U.S. auto manufacturers.
The complete rating action is as follows:
COMPLETE RATING ACTION
Issuer: Whole Auto Loan Trust 2003-1
$758,000,000 Class A-1 1.10% Senior
Notes, rated Prime-1
$834,000,000 Class A-2A 1.40%
Senior Notes, rated Aaa
$20,000,000 Class A-2B 3.69% Senior
Notes, rated Aaa
$160,875,000 Class A-3A 1.84%
Senior Notes, rated Aaa
$273,250,000 Class A-3B 1.99%
Senior Notes, rated Aaa
$160,875,000 Class A-3C 2.15%
Senior Notes, rated Aaa
$462,605,000 Class A-4 2.58% Senior
Notes, rated Aaa
$69,520,000 Class B 2.24% Subordinate
Notes, rated A1
$27,805,000 Class C 3.13% Subordinate
Notes, rated Baa1
$69,520,000 Class D 6.00% Subordinate
Notes, rated Ba3
WALT 2003-1 was formed in September 2003 by Bear Stearns Asset
Backed Funding II Inc. (the depositor and a subsidiary of The Bear
Stearns Companies, Inc. (rated A2/Prime-1)),
and Wilmington Trust Company as owner trustee. Over the course
of the past two years, Bear Stearns has purchased over $10
billion of prime auto retail installment sale contracts from DaimlerChrysler
Services North America LLC (DCS), Ford Motor Credit Company (Ford
Credit), Volvo Finance North America, Inc. and General
Motors Acceptance Corp. (GMAC) on a whole loan sale, servicing-retained
basis. The transactions were completed on a true sale, non-recourse
basis, with Bear Stearns owning a 100% economic interest
in the collateral.
The receivables pool securing the WALT 2003-1 notes is comprised
only of loans originated by DCS, Ford Credit and GMAC. A
detailed discussion of the collateral pools is contained in Moody's Pre-Sale
Report dated September 26, 2003.
Nominally, the servicer of the WALT 2003-1 receivables is
Bear Stearns Asset Receivables Corp., an affiliate of the
depositor and Bear, Stearns & Co. Inc. However,
the servicer will subcontract with each of the three receivables servicers
(DCS, Ford Credit and GMAC) to collect amounts due on the receivables.
Additionally, the servicer will initially subcontract with Systems
& Services Technologies, Inc. to perform the servicer's
data administration obligations. The Bear Stearns Companies Inc.,
the parent of the servicer, will guarantee the obligations of the
servicer under the sale and servicing agreement.
SENIOR AND SUBORDINATED NOTES ISSUED FROM OWNER TRUST; "CONCURRENT
The WALT 2003-1 transaction is a senior-subordinate,
"concurrent pay" structure. Until the class A-1 money market
notes are fully repaid, all principal payments will be allocated
to the class A-1 notes. Each month thereafter, principal
will be allocated to each class in an amount sufficient to maintain the
target enhancement level for that class; this target enhancement
level is the combined amount of overcollateralization and subordination.
The minimum amount of overcollateralization is the greater of 1.40%
of the outstanding adjusted principal balance of the receivables or 1.00%
of the initial adjusted principal balance of the pool. Once the
amount of overcollateralization equals 1.00% of the initial
adjusted pool balance, it will become an increasing percentage of
the note principal balance. As a result, an equal level of
enhancement can be provided to the senior classes by substituting subordination
with a now larger amount of overcollateralization. This allows
the subordinate classes to be paid down more quickly. If certain
triggers are breached, the principal payment priority will revert
to a pure sequential pay structure, thereby creating more credit
enhancement for the senior classes of notes.
DISCOUNTING MECHANISM INCREASE'S POOL'S EFFECTIVE WAC; NOTES EXCEED
ADJUSTED POOL BALANCE BY 2.00%
In order to boost the pool's WAC, which at 3.94% reflects
the inclusion of a large proportion of subvened loans, the adjusted
principal balance of all receivables with an APR less than 6.00%
per annum will be calculated monthly to equal the present value of all
scheduled payments on those receivables, discounted from the due
date at the rate of 6.00% per annum. This calculation
brings the pool's effective WAC up to 7.29% as of
The securities issued exceed the initial adjusted pool balance by 2.00%.
The initial overissuance amount is expected to become fully collateralized
and the additional overcollateralization to build through the application
of excess spread over approximately the first 8 to 10 months of the transaction.
Additional research is available on http://www.moodys.com.
Structured Finance Group
Moody's Investors Service
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
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.