Fitch Affirms Ratings of CP Notes Issued by DCAT Following Covenant Breach.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. affirms the 'F1' ratings of the commercial paper (CP) notes issued by Dealers Capital Access Trust (DCAT DCAT Diesel Clean Advanced Technology DCAT Drug, Chemical & Associated Technologies Association, Inc. DCAT Design, Components, Assembly, and Testing DCAT Directorate of Combined Arms Tactics DCAT Discrepancy and Corrective Action Tracking ). The affirmation follows a breach of the terms and conditions of the program documents as contained in the dealer loan purchase agreement. The breach resulted from the application of DCAT CP proceeds to pay fees and expenses of the programs, representing less than 0.1% of CP outstandings totaling $425.1 million. Program covenants state that issuance proceeds may only be used to repay maturing CP and make loans to Caterpillar dealers. The CP issued by DCAT continues to be fully collateralized by dealer loans in addition to approximately $1.2 million in cash accounts. The CP continues to benefit from 100% credit support of the face value of all dealer loans provided in the form of a dealer loan purchase agreement provided by Caterpillar Financial Services Corporation (rated 'A+/F1' by Fitch). In addition to the credit support provided, the CP benefits from 100% liquidity support provided by CFSC CFSC Community Food Security Coalition CFSC Community & Family Support Center CFSC Charleston Financial Service Center (Department of State) CFSC Central Florida Sports Commission CFSC Chatham Figure Skating Club through a syndicate of 'F1' or higher rated banks or financial institutions. Furthermore, the affirmation reflects Fitch's expectation that the breach was isolated and that operational controls have been restored to mitigate any future covenant breach or other operational breakdown. DCAT was established in 1992 in order to issue CP. Proceeds are used to provide unsecured and secured financing for heavy equipment sold by eligible and authorized Caterpillar, Inc. dealers. 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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