NEW YORK, Feb. 5 /PRNewswire/ -- Standard & Poor's today assigned its
double-'A' rating to the $150 million floating-rate notes, due Aug. 1, 2005,
issued by Golden Funding Corp., and at the same time, Standard & Poor's
affirmed its 'A-1' rating on Golden Funding's commercial paper program.
The ratings reflect:
-- The quality of the various asset pools of Golden Funding;
-- The dynamic overcollateralization and approximately $58 million of
programwide credit enhancement available for all asset pools;
-- The ability of Golden Funding to meet liquidity support obligations
with internal liquidity generated by the asset pools and with
external liquidity from providers with short-term ratings
commensurate with both the commercial paper and floating-rate notes;
-- The commercial paper and floating-rate notes issuance provisions
under the security agreement;
-- The bankruptcy-remote legal structure of Golden Funding;
-- The experience of JPMorganChase Bank as administrator and master
servicer; and
-- The strength of the McDonald's Corp.'s business model, which is made
up of the McDonald's Corp., the franchises that own restaurants, and
the suppliers to the restaurant system.
Under the security agreement, each day, and as a condition to issuance,
Golden Funding must ensure that the commercial paper has sufficient internal
and external liquidity to meet maturity schedules. In addition, prior to
floating-rate notes issuance, there must be sufficient capacity under the
various liquidity devices to provide for the retirement of commercial paper
and floating-rate notes at maturity. Failure to meet the liquidity tests and
other collateral conditions would result in partial redemption of the
floating-rate notes until compliance is met.
Golden Funding, a subsidiary of System Capital Corp, is a partially
enhanced, asset-backed commercial paper conduit administered by JPMorganChase
Bank. System Capital provides financing for activities related to the
McDonald's Corp. restaurant system and is equally owned by McDonald's and six
suppliers within the system.
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Andrew Engel of Standard & Poor's,
+1-212-438-6305
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