TOKYO, Feb. 12 /PRNewswire/ -- (EDITOR'S NOTE: In the original version of
this release, the amount for the trust certificate to be issued by Kyoyu Lease
was misstated as JPY2.24 billion. The correct amount is JPY1.76 billion. A
corrected version of the release follows.)
Standard & Poor's today assigned its preliminary triple-'A' ratings to
Partnership Asset Backed Hybrid Series 1 JPY20 billion trust certificates and
JPY6 billion Limited Recourse Loan.
The preliminary ratings are based on information as of February 12, 2002.
Subsequent information may result in the assignment of final ratings that
differ from the preliminary ratings. Standard & Poor's ratings address the
full and timely payment of interest and the ultimate full repayment of
principal of the certificates and limited recourse loan by the transaction's
legal final maturity of February 2008.
The aggregate JPY26 billion trust certificates and limited recourse loan
are ultimately backed by the following four pools of lease receivables:
-- A pool of approximately JPY23.4 billion of lease receivables originated
by Central Leasing Co. Ltd.
-- A pool of approximately JPY5.85 billion of lease receivables originated
by Central Auto Leasing Co. Ltd.
-- A pool of approximately JPY2.24 billion of lease receivables originated
by Kyoyu Lease Co. Ltd.
-- A pool of approximately JPY1.49 billion of lease receivables originated
by Nakamichi Leasing Co. Ltd.
The JPY6 billion and JPY12 billion trust certificates will be issued and
backed by lease receivables originated by Central Leasing. The JPY5.06
billion trust certificate will be issued and backed by lease receivables
originated by Central Auto Leasing. The JPY1.76 billion trust certificate
will be issued and backed by lease receivables originated by Kyoyu Lease. The
JPY1.18 billion trust certificate will be issued and backed by lease
receivables originated by Nakamichi Leasing.
Of the JPY33 billion receivables that back the trust certificates,
approximately JPY1.9 billion are scheduled to be collected after the expected
final maturity date of the trust certificates, and thus may not be collected
in time to cover principal and interest payments on the certificates and the
loan. The lease receivables will be entrusted to Norinchukin Trust & Banking
Co. Ltd.
The JPY6 billion trust certificate backed by lease receivables originated
by Central Leasing will be offered directly to investors. The other trust
certificates will be transferred to the specified money trust entrusted to
Norinchukin Trust. The specified money trust will issue JPY14 billion senior
certificates and will extend a JPY6 billion limited recourse loan to investors
for the purpose of purchasing the senior certificates.
The preliminary ratings on the senior certificates and the limited
recourse loan issued to investors are based on the following factors:
-- Overcollateralization of receivables sufficient to cover defaults;
-- Ample cash reserves to be funded at closing to mitigate any potential
shortfalls in liquidity;
-- Rigorous early amortization events that will convert principal
redemption to a pass-though structure under certain adverse
circumstances; and
-- The establishment of robust servicing mechanisms, including the
existence of a backup servicer, at closing.
PRELIMINARY RATINGS ASSIGNED
Partnership Asset-Backed Hybrid Series 1 JPY26 billion trust certificates
and limited recourse loan due Feb. 2008
Issue Preliminary Amount Preliminary Rating
Trust Certificates JPY20 bil. AAA
Limited Recourse Loan JPY6 bil. AAA
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Kazutoshi Murakami, +81-3-3593-8673, or
Hiromi Saito, +81-3-3593-8786, both of Standard & Poor's, Tokyo
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