ACE Funding Ltd. Nts Rated A by S&P.Business Editors MELBOURNE, Australia--(BUSINESS WIRE)--Standard & Poor's March 15, 2001--Standard & Poor's today assigned its final rating of single-'A' to notes issued by ACE Funding Ltd. These securities ultimately are backed by notes issued by Ford Motor Credit Co. (single-'A'/Negative/'A-1'). ACE Funding Ltd. has issued a single tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. of A$100 million of single-'A' rated ACE Funding series 2001-1 medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. (ACE Funding Ltd. notes). Proceeds from the ACE Funding Ltd. notes were used to purchase US$53.128 million of single-'A' rated, fixed-rate, bullet notes issued by Ford Motor Credit Co. (Ford notes). The Ford notes form part of a March 15, 2000, issuance by Ford Motor Credit Co. They pay a U.S. dollar fixed coupon on the 15th day of March and September each year, with a bullet principal payment due on the final maturity date of March 15, 2005. The ACE Funding Ltd. notes pay a floating rate of interest based on the 90-day bank bill swap rate Swap Rate The rate of the fixed portion of a swap as determined by its particular market. This is the rate at which the swap will occur for one of the parties entering into the agreement. on the 15th day of March, June, September, and December each year. A final bullet principal payment is due on March 15, 2005. A fixed- to floating-rate cross currency swap Currency Swap A swap that involves the exchange of principal and interest in one currency for the same in another currency. Notes: Currency swaps were originally done to get around the problem of exchange controls. with SG Australia Ltd. (double-'A'-minus/Stable/'A-1'-plus) will be used to cover the currency mismatch mismatch 1. in blood transfusions and transplantation immunology, an incompatibility between potential donor and recipient. 2. one or more nucleotides in one of the double strands in a nucleic acid molecule without complementary nucleotides in the same position on the other between the U.S. dollar Ford notes and the Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents ACE Funding Ltd. notes and the interest rate mismatch between the fixed rate paid on the Ford notes and the floating rate due on the ACE Funding Ltd. notes, Standard & Poor's said. ---CreditWire |
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