TOKYO, Feb. 5 /PRNewswire/ -- Standard & Poor's today assigned its
preliminary ratings to Oasis Series II Special Purpose Co.'s JPY19.5 billion
class A1 through C notes and Oasis Loan Special Purpose Co.'s JPY11 billion
loan due February 2007 (see list below).
The preliminary ratings are based on information as of Feb. 5, 2002.
Subsequent information may result in the assignment of final ratings that
differ from the preliminary ratings. The preliminary ratings on Oasis II and
Oasis Loan specifically address the timely payment of interest and full
repayment of principal by the legal final maturity of February 2007.
The notes are backed by the combined deferred purchase price obligations,
amounting to approximately JPY51.3 billion, from the Orico Shop series of
shopping loan securitizations originated by Orient Corp. (Orico). In each
Orico shop transaction, the deferred purchase price obligation acts as a
credit enhancement in much the same way as a subordinated beneficial interest
does under a trust structure. This transaction will in no way affect the
ratings on the past Orico Shop securitizations. Shopping loans are consumer
loans extended to purchasers of various goods and services. This transaction
is similar to the Oasis SPC transaction that closed in 2001, in which Orico
securitized the subordinated certificates from its previous series of auto
loan transactions.
The preliminary ratings are based on:
-- The quality of the shopping loan receivables originally securitized by
Orico, which satisfy strict eligibility criteria;
-- Overcollateralization equivalent to about 53% of the total balance of
the deferred purchase price obligations for the Class A1 and Class A2
notes and the loan, about 45% for the Class B1 and B2 notes, and about
40% for the Class C notes;
-- An ample cash reserve account to be funded at closing;
-- A swap agreement entered into with an appropriately rated counterparty
to mitigate interest rate risks; and
-- The status of Oasis Series II and Oasis Loan as special-purpose,
bankruptcy-remote entities.
Orico is one of the largest nonbank finance companies in Japan. Orico has
originated six shopping loan-backed securitizations: Orico Shop SPC
(March 1999), Orico Shop Series II SPC (June, 1999), Orico Shop Version Three
SPC (Oct. 1999), Orico Shop Aries SPC (March 2000), Orico Shop Taurus SPC
(Aug. 2000), and Orico Shop Gemini SPC (March 2001). Each independently
arranged transaction issued securities backed by a pool of shopping loan
receivables. Standard & Poor's assigned its triple-'A' rating to all of the
Orico Shop deals.
An English-language presale report for this transaction will soon be
available on RatingsDirect, Standard & Poor's premier Web-based credit
analysis system, at http://www.ratingsdirect.com. The presale report will also be
available on Standard & Poor's Web site at http://www.standardandpoors.com. Under
Presale Reports, select Structured Finance, then Asset-Backed Securities. A
Japanese-language report will be available on Standard & Poor's Japanese Web
site at http://www.standardandpoors.co.jp.
PRELIMINARY RATINGS ASSIGNED
Oasis Series II Special Purpose Co.'s JPY19.5 billion notes due
February 2007
Issue Preliminary Amount Preliminary Rating
Class A1 and A2 JPY14 bil. AA
Class B1 and B2 JPY3 bil. A
Class C JPY2.5 bil. BBB
Oasis Loan Special Purpose Co.'s JPY11 billion loan due February 2007
Issue Preliminary Amount Preliminary Rating
Special Purpose Loan JPY11 bil. AA
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Hiromi Saito of Standard & Poor's, Tokyo,
+81-3-3593-8786
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