MOODY'S RATING ACTIONS FOR THE SEVEN DAY PERIOD ENDED DECEMBER 14, 2000
New York, December 15, 2000 -- THE FOLLOWING ABCP PROGRAMS WERE ASSIGNED PRIME-1 RATINGS BY MOODY'S DURING THE SEVEN DAY PERIOD ENDED DECEMBER 14, 2000:
MOODY'S ASSIGNS PRIME-1 RATING TO HVB'S MAXIMILIAN CAPITAL CORP. ABCP
In Hong Kong, Moody's assigned a Prime-1 rating to the ABCP of Maximilian Capital Corp. (Maximilian). The program is administered by Prime-1-rated Bayerische Hypo-und Vereinsbank AG (HVB), acting through its Singapore branch (HVB-Singapore). HVB-Singapore and HVB Risk Management Products Inc will be acting as administrative agents. Maximilian may issue up to $3 billion of ABCP.
The assets that Maximilian acquires may be either Non-Loan Assets (corporate debts and/or asset-backed securities) or Structured Asset Backed Investments (loans to its subsidiaries for asset purchases by those subsidiaries). The conduit can only buy Non-Loan Assets that are of at least investment-grade credit quality. The Non-Loan Asset portfolio must maintain an average credit quality from A3 down to Baa1. Maximilian may acquire publicly rated corporate debts and asset-backed securities without prior review by Moody's, as long as certain portfolio criteria are satisfied. The subsidiaries will have their own liquidity and credit enhancement arrangements so that the credit quality of the Structured Asset Backed Investments is consistent with the Prime-1rating of the ABCP.
Liquidity support will provide funds to ensure timely repayment of maturing ABCP, and liquidity will provide funds up to the amount of non-defaulted assets. Maximilian's Non-Loan Asset portfolio will benefit from program-level credit enhancement. This credit support will be in the form of a standby letter of credit provided by HVB-Singapore. At a minimum, it will equal 5% of the outstanding balance of the Non-Loan Asset portfolio; however, initially the required amount will be 6.25% of the outstanding balance of Non-Loan Assets. Maximilian must enter into appropriate hedging agreements with counterparties rated Aa3 (or above) to protect investors from any interest rate or currency risk.
For further details, please see Moody's press release dated December 14, 2000.
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