Fitch Rates Morgan Stanley Auto Loan Trust 2004-HB2 'AAA'.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 rates the receivables-backed notes issued by Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Auto Loan Trust (MSALT MSALT Mean Sea Level Altitude ) 2004-HB-2 as listed below: -- $170,000,000 class A-1 1.90% asset-backed notes 'AAA'; -- $135,490,000 class A-2 2.40% asset-backed notes 'AAA'; -- $178,340,000 class A-3 2.94% asset-backed notes 'AAA'; -- $103,320,000 class A-4 3.46% asset-backed notes 'AAA'; -- $13,700,000 class B 3.37% asset-backed notes 'A+'; -- $17,200,000 class C 3.24% asset-backed notes 'BBB+'; -- $8,285,000 class D 3.82% asset-backed notes 'BBB'; -- $10,832,000 class E 5.00% asset-backed notes 'BB'. The ratings on the notes are based on their respective levels of credit. All ratings reflect the transaction's sound legal structure and the high quality of the retail auto receivables originated and serviced by The Huntington National Bank (Huntington). The trust will also issue class E notes that are not being publicly offered. The securities are backed by a pool of prime retail installment sales Installment sale The sale of an asset in exchange for a specified series of payments (the installments). installment sale A sale in which the buyer is scheduled to make a series of payments over a period of time. contracts secured by new and used automobiles and light duty trucks from a diverse pool of manufacturers originated by Huntington. Initial 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 equals 7.85% for the class A notes, 5.70% for the class B notes, 3.00% for the class C notes, and 1.70% for the class D notes. The class E notes are fully collateralized. Excess spread is used to turbo pay the notes to reach the target overcollateralization of the 2.00% of the outstanding receivables balance. The transaction has a sequential pay structure until the class A target enhancement level (11.75%) is reached, whereupon principal payments are distributed on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis between class A and the remaining notes. The class C, D, and E notes do not receive principal payments until the class B notes reach the target enhancement level of 7.25%. Likewise, the class D notes are not paid principal until the class C notes obtain 5.50% total enhancement, and the class E notes do receive principal payments until the class D notes obtain 5.50% total enhancement. Target enhancement is the aggregate of subordination and overcollateralization. If the three-month annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net loss average exceeds defined scheduled trigger levels, principal is distributed sequentially. |
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