Fitch Affirms 'F1+' Rating on Jupiter Securitization Company ABCP Program.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed the 'F1+' rating assigned to the asset-backed commercial paper (ABCP ABCP Asset-Backed Commercial Paper ABCP Associação Brasileira de Cimento Portland (Brazil) ABCP Associação Brasileira de Ciência Política ABCP American Board of Cardiovascular Perfusion ABCP Associate Business Continuity Planner ) issued by Jupiter Securitization Company LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Jupiter), a $30 billion U.S. dollar and Euro ABCP program sponsored by JPMorgan Chase Bank, N.A. (JPMorgan, rated 'AA-/F1+') upon its program restructuring and completion of the transition period. JPMorgan restructured its ABCP program and created a new bankruptcy remote, Delaware statutory trust, JS Siloed Trust. The JS Siloed Trust issues JUSI certificates, each of which are identified with a particular JUSI portfolio, which consists of the respective asset interests, transaction-specific liquidity facility, related JUSI credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing , and any applicable hedge contract. Jupiter uses the commercial paper (CP) issuance proceeds to purchase JUSI certificates from the JS Siloed Trust and the JS Siloed Trust, in turn, uses those proceeds to purchase asset interests in JUSI portfolios. Each series of Jupiter's CP has a ratable That which can be appraised, assessed, or adjusted through the application of a formula or percentage. Ratable property is that which is taxable or capable of being appraised or assessed. ratable adj. claim against all JUSI certificates purchased by Jupiter. JUSI portfolios are not cross collateralized to support all JUSI certificates and each JUSI certificate only has claims against its related JUSI portfolio. Jupiter's CP is supported by three forms of credit enhancement which includes transaction-specific credit enhancement, JUSI credit enhancement, and programwide credit enhancement. The first layer of credit enhancement is asset-specific and may take the form of over-collateralization, subordination, monoline insurance guarantees, cash collateral accounts, reserve accounts, or excess spread, among other types. In addition, each series of JUSI certificates benefits from JUSI credit enhancement sized to equal at least 2.5% of the maximum facility amount and takes the form of a letter of credit or other forms provided by JPMorgan denominated in the same currency as the facility. If the JS Siloed Trust has insufficient funds (after applying any available funds from the relevant liquidity agreement) to fully repay maturing CP, then such deficiency will be covered by the JUSI credit enhancement on a same-day basis. Finally, programwide credit enhancement is made available to Jupiter to support investments in JUSI certificates if there are any losses after the application of the respective transaction-specific and JUSI credit enhancement. The programwide credit enhancement is provided in the form of a surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. provided by Ambac Assuarance Corporation. Until Sept. 17, 2007, the programwide credit enhancement will remain at 10% of outstanding CP, subject to a floor of $375 million. Thereafter, the required amount of programwide credit enhancement will be equal to 7.5% of outstanding CP, subject to a floor of $375 million. The decrease in programwide credit enhancement is mitigated by the addition of JUSI credit enhancement; however, JUSI credit enhancement is not fungible A description applied to items of which each unit is identical to every other unit, such as in the case of grain, oil, or flour. Fungible goods are those that can readily be estimated and replaced according to weight, measure, and amount. across all JUSI transactions. To facilitate the timely repayment of maturing CP, Jupiter's CP will be supported by transaction-specific liquidity, sized in an amount at least equal to 102% of each facility limit, generally provided in the form of an asset purchase agreement. Transaction-specific liquidity is provided primarily by 'F1+' rated banks or financial institutions, with a limited number of 'F1' rated participants. In general, liquidity providers will not be obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to fund against defaulted receivables, or in the event of the bankruptcy of Jupiter. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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