New York, January 20, 2010 -- Moody's ABCP rating actions for the seven-day period ended January
MOODY'S RATED THE FOLLOWING ABCP PROGRAM PRIME-1 DURING THE PERIOD
JANUARY 12, 2010 THROUGH JANUARY 18, 2010:
MOODY'S ASSIGNS PRIME-1 RATING TO LANDESBANK BADEN-WÜRTTEMBERG'S
WEINBERG CAPITAL LIMITED ABCP PROGRAM
In London, Moody's has assigned a definitive Prime-1 rating
to the asset-backed commercial paper ("ABCP") issued
by issued by Weinberg Capital Limited ("Weinberg Capital"). Weinberg
Capital is a newly established, prior review, fully supported,
multiseller ABCP program sponsored by
Landesbank Baden-Württemberg ("LBBW," rated
Aa2/Prime-1/C-). Weinberg Capital will issue ABCP
in the European market up to a maximum program limit of EUR 5 billion.
Weinberg Capital program has been established as the successor to Lake
Constance Funding Limited ("Lake Constance"), an existing Prime-1-rated
multiseller program also sponsored by LBBW. Lake Constance currently
funds a portfolio of 23 term and trade receivables transactions.
The sponsor has informed Moody's of its intention to replace the
funding of each transaction currently finance by Lake Constance with ABCP
issued by Weinberg Capital. The transfer of all transactions currently
in Lake Constance is expected to be completed by end of February 2010.
The sponsor has indicated that once the latest maturing ABCP issued by
Lake Constance has been repaid, LBBW may withdraw Lake Constance's
rating, and wind down the vehicle.
Assets transferred from Lake Constance and newly financed asset pools
will be purchased either by Weinberg Capital directly or by Weinberg Funding
Limited, a special purpose vehicle incorporated under the laws of
Jersey. All asset transferred from Lake Constance will be funded
in Weinberg Capital on a fully supported basis, with liquidity support
initially provided by LBBW. Furthermore, the sponsor's intention
is to have all new transactions financed by Weinberg Capital be fully
supported, by means of liquidity facilities provided by Prime-1-rated
The Prime-1 rating assigned to the ABCP issued by Weinberg Capital
is based on, among other factors, the following: (i)
the capabilities of LBBW as an experienced conduit administrator;
(ii) full liquidity support for each transaction to be arranged with Prime-1-rated
banks; (iii) Moody's prior review of all new asset pools;
(iv) indemnification provided by the LBBW as administrator to ensure timely
repayment of maturing ABCP; and (v) structural protections to ensure
the bankruptcy-remoteness of Weinberg Capital and Weinberg Funding.
LBBW is the administrator and transaction arranger to Weinberg Capital.
It has significant prior experience in conduit management, notably
in relation to the Lake Constance program.
For further details, please see Moody's press release dated
14 January 2010.
THE RATINGS OF THE FOLLOWING ABCP PROGRAMS WERE AFFIRMED AT PRIME-1
DURING THE PERIOD JANUARY 12, 2010 THROUGH JANUARY 18, 2010:
UNICREDIT BANK'S ARABELLA ADDS TWO TRANSACTIONS TOTALING EUR 215 MILLION
Arabella Finance Limited/Arabella Finance LLC (together, "Arabella"),
a partially supported, multiseller ABCP programme sponsored by Unicredit
Bank AG ("Unicredit Bank", formerly Bayerische Hypo-
und Vereinsbank AG, rated A1/Prime-1/C-), has
added a Euro 125 million trade receivable transaction and a Euro 90 million
of auto loan backed transaction to its portfolio. The two transactions
were previously funded through Unicredit Bank's Salome Funding Plc program.
In the first transaction, the underlying pool consists of trade
receivables originated by a Belgium company operating in the steel industry.
The transaction is fully supported by the combination of a transaction-level
letter of credit and an increase to Arabella's program-level
standby letter of credit (both allocated and unallocated portions),
provided by Prime-1-rated Unicredit Bank, London Branch.
In the second transaction, Arabella has purchased Euro 90 million
of highly-rated Italian structured notes backed by auto loan receivables
originated by an Italian captive finance company. The transaction
is partially supported by a liquidity facility provided by HVB.
The liquidity facility funds so long as the notes are rated above Caa1.
Investors benefit from a cease issuance in ABCP if the notes are downgraded
to below A3 or if a certain cumulative default trigger is breached.
Arabella is authorized to issue up to Euro 1.3 billion of ABCP
and has Euro 525 million in program-level credit enhancement.
HSBC'S REGENCY AND NORDEA'S VIKING CO-PURCHASE EUR
500 MILLION TRADE RECEIVABLE TRANSACTION
Regency Markets No. 1 LLC ("Regency"), a partially supported,
multiseller ABCP conduit administered by HSBC Bank plc (Aa2/Prime-1/C+)
and Viking Asset Securitisation Limited ("Viking"), a partially
supported, multiseller ABCP conduit sponsored by Nordea Bank AB
(Aa2/Prime-1/C+), have each added a Euro 250 million
interest in a trade receivable transaction. The receivables are
originated by various subsidiaries of a leading global facilities services
provider. In both Regency and Viking, the transaction benefits
from a fully supported liquidity facility provided by the respective sponsoring
bank. This means that CP investors are not exposed to any credit
risk on the underlying assets.
Regency has not increased its program-level credit enhancement
with this transaction. Regency is authorized to issue up to Euro
5.9 billion of ABCP. Viking increased its program-level
credit enhancement (which is in the form of a standby letter of credit
provided by Nordea Bank Danmark A/S) by 5% of outstanding ABCP.
Viking is authorized to issue up to Euro 1.0 billion of ABCP.
BNP PARIBAS' THESEE AND CALYON'S LMA CO-PURCHASE EUR 280 MILLION
TRADE RECEIVABLE TRANSACTION
Thesee Limited ("Thesee"), a partially supported, multiseller
ABCP conduit sponsored by BNP Paribas (Aa2/Prime-1/B-),
and LMA SA/LMA Americas LLC ("LMA"), a fully supported,
multiseller ABCP conduit sponsored by Calyon (Aa3/Prime-1/D),
have joined to purchase FCT units (also known as French asset-backed
securities) backed by telecom receivables for a maximum amount of Euro
140 million each.
The transaction is a Euro 280 million securitization of trade receivables
originated by a French company operating in the telecom industry.
Transaction-specific credit enhancement is in the form of overcollateralisation
(includes a loss and dilution reserve) as well as a yield and cost reserve.
The loss and dilution reserve is based on a dynamic formula tied to historical
default and dilution performance, with a minimum level of 24%.
The transaction includes one special obligor with a concentration limit
of 12%. However, the rest of the pool is extremely
granular. The transaction has several termination events based
on pool performance triggers and financial condition of the originator.
A termination event may result in an early amortization of the securitization
In Thesee, the transaction is partially supported through a liquidity
facility provided by BNP Paribas. The liquidity facility covers
non-defaulted and non-diluted assets as well as cash collected
but not remitted to the conduit. The liquidity facility does not
front specifically for CP yield, which is covered by the dynamic
yield reserve as part of the overcollateralisation.
With this transaction, Thesee's program-level credit
enhancement increased by 5% of its purchase commitment, however
the sub-limit of Euro 26 million available to cover credit losses
was not increased. Thesee has Euro 46.5 million in program-level
credit enhancement and is authorized to issue up to Euro 715 million of
In LMA, the transaction is fully supported by a liquidity facility
provided by Calyon. LMA is authorized to issue up to Euro 8.82
billion of ABCP.
THE RATING OF THE FOLLOWING ABCP PROGRAM WAS WITHDRAWN DURING THE PERIOD
JANUARY 12, 2010 THROUGH JANUARY 18, 2010:
PICAROS FUNDING RATING WITHDRAWN
At the issuer's request, Moody's has withdrawn the Prime-1
rating of the ABCP issued by Picaros Funding plc/Picaros Funding LLC,
("Picaros Funding"), a fully supported, synthetic
ABCP programme administered by KBC Financial Products UK Limited.
As of November 30, 2009, all outstanding ABCP had been repaid
in full. Moody's policies regarding the withdrawal of ratings are
described in "Moody's Guidelines for the Withdrawal of Ratings".
The principal methodology used in rating and monitoring the above-referenced
ABCP programs is described in "The Fundamentals of Asset-Backed
Commercial Paper" (February 2003), which is available on www.moodys.com
in the Rating Methodologies sub-directory under the Research &
Ratings tab. Other methodologies and factors that may have been
considered in the rating process can also be found in the Rating Methodologies
sub-directory on Moody's website.
Moody's monitors and analyzes ABCP programs on an ongoing basis.
The rating actions apply to the CP issued by the ABCP programs and not
the individual transaction in the programs' portfolio. A detailed
description of each program is published in the ABCP Program Review.
Some ABCP programs have monthly updated performance information,
which is published in the Performance Overviews. All publications
are available on Moody's website.
In addition, Moody's publishes a weekly summary of structured finance
credit, ratings and methodologies, available to all registered
users of our website, at www.moodys.com/SFQuickCheck.
Senior Vice President
Structured Finance Group
Moody's Investors Service
Moody's ABCP rating actions ending January 18, 2010
Structured Finance Group
Moody's Investors Service