LONDON, Feb. 15 /PRNewswire/ -- Standard & Poor's today raised its rating
on the class B floating-rate notes issued by special-purpose entity (SPE)
Prospect 3 PLC to 'AAA' from 'A'. At the same time, the 'AAA' rating on the
class A notes was affirmed.
The notes, which were issued by Prospect 3 in August 1996, are backed by a
portfolio of individual personal loans, originated through branches of HFC
Bank PLC and directly to borrowers via Hamilton Direct Bank (HDB), a division
of HFC Bank.
The rating actions reflect the increased level of credit support on the
unrated C notes complemented by the strong underlying performance of a
seasoned loan pool. Write-offs and delinquency rates for both branch personal
loans and HDB personal loans are within acceptable levels. Cumulative losses
amounted to 5.3% of the initial collateral balance as at January 2002.
The current level of credit support is four times higher than that at
closing. Both the A notes and the B notes have the combined benefit of
subordination of the unrated C notes, the spread account, and the subordinated
loan facility. The A notes also have the additional support provided by
subordination of the B notes.
For more information please see the published performance data on
RatingsDirect, Standard & Poor's Web-based credit analysis system, at
http://www.ratingsdirect.com.
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Stuart Nelson, +44-20-7826-3621, or Chris
Such, +44-20-7826-3529, both of Standard & Poor's, London
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