S&P: Preliminary Ratings to Central Finance's JPY22.1 Bil ABS

Search Blogs that Mention this News Release
Click this link to view linked Bookmarking Services
Click this link to view linked Blogging Services
S&P: Preliminary Ratings to Central Finance's JPY22.1 Bil ABS
    TOKYO, Feb. 15 /PRNewswire/ -- Standard & Poor's today assigned its
preliminary triple-'A' ratings to Central Finance Co. Ltd.'s JPY22.1 billion
Series One Auto Loan Trust Certificates and Limited Recourse Loan (see table
below).
    The senior certificates and the loan are backed by a pool of
approximately JPY24 billion worth of auto loan receivables originated by
Central
Finance. Two sets of senior certificates will be issued following the
remittance of the receivables to the trust, one of which will be fully
redeemed in advance of the closing of the transaction, using funds provided by
the limited recourse loan. The auto loan receivables will be entrusted to UFJ
Trust Bank Ltd.
    The preliminary ratings are based on information as of Feb. 15, 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 by the expected final maturity date.
    The preliminary ratings on the asset-backed hybrid trust certificates and
limited recourse loan are based on the following :
    -- Overcollateralization of approximately JPY1.9 billion on the principal
       of auto loan receivables to cover defaults;
    -- An ample cash reserve account, funded at closing to cover several
       months of interest payments on the senior certificates and loan, as
       well as transaction costs;
    -- A comparatively high level of excess yield, which will be used both to
       redeem the senior certificates to the equivalent of the amount of the
       defaulted receivables, and also to make principal payments on the loan,
       throughout the duration of the transaction;
    -- Rigorous early amortization events that will convert principal
       redemption to a pass-through structure under certain adverse
       circumstances;
    -- The existence of MCS Saiken Kaishu Co. Ltd. as a backup servicer; and
    -- Confirmation following a strict legal assessment that the entrusted
       assets backing the senior certificates and limited recourse loan are
       legally segregated from the trust bank's assets.

    PRELIMINARY RATINGS ASSIGNED
    JPY14.1 billion trust certificates and JPY8 billion limited recourse loan
    due March 2007

    Issue                    Preliminary Amount (JPY Bil.)  Preliminary Rating
    Class 1 Senior
     certificates                    1.4                          AAA
    Class 2 Senior
     certificates                    1.8                          AAA
    Limited Recourse
     Loan Class A                    1.6                          AAA
    Limited Recourse
     Loan Class B                    1.8                          AAA
    Limited Recourse Loan Class C    1.5                          AAA
    Class 6 Senior certificates      1.9                          AAA
    Limited Recourse Loan Class D    1.4                          AAA
    Limited Recourse Loan Class E    1.7                          AAA
    Class 9 Senior certificates      1.3                          AAA
    Class 10 Senior certificates     7.7                          AAA
SOURCE Standard & Poor's
http://www.standardandpoors.com/ratings
CONTACT:
Akira Yamamoto, +81-3-3593-8742, or Hiromi
Saito, +81-3-3593-8786, both of Standard & Poor's Ratings
Services