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Fitch Rates White Point Funding's $10B A-B Commercial Paper 'F1'.

NEW YORK -- White Point Funding, Inc.'s (WP Funding) $10 billion asset-backed commercial paper (CP) program, sponsored by the Royal Bank of Canada (RBC), is rated 'F1' by Fitch. The rating is based upon the high quality assets purchased by WP Funding; liquidity support provided by 'F1' or equivalently rated financial institutions; transaction-specific credit enhancement; programwide credit enhancement provided in the form of a credit support asset purchase agreement; the program's sound legal structure; and the administrative capabilities of RBC in its role as administrative agent. Additionally, Fitch will review each of WP Funding's transactions prior to funding to ensure that it is of a credit quality commensurate with the rating assigned to the program's CP. RBC is currently rated 'AA/F1+' by Fitch, with a Stable Rating Outlook.

WP Funding is a bankruptcy-remote, Delaware special-purpose corporation established to issue 4(2) CP and variable funding notes (VFNs) in an aggregate amount of up to $10 billion. At this time Fitch has only assigned a rating to the WP Funding CP. CP may be issued with maturities of up to 183 days, provided, however, that CP may not be issued with a maturity date greater than the business day preceding the termination or expiration date of any related agreement providing liquidity support or credit enhancement. The proceeds of the CP will be used to acquire various financial assets or to make loans to White Point Capital, LLC (WP Capital). WP Capital is a bankruptcy-remote, Delaware special-purpose limited liability company that is wholly owned by WP Funding. WP Capital has been established to acquire financial assets primarily from RBC, but may purchase assets from other sellers. The acquisition of assets by WP Capital will be funded by the loans made by WP Funding. Fitch will review each transaction in WP Funding and WP Capital prior to funding to ensure that it is structured to a credit quality commensurate with the rating assigned to the CP.

WP Funding's CP is supported by two layers of credit enhancement. The first layer of loss protection is provided by transaction-specific credit enhancement and may be in the form of overcollateralization, subordination, third-party guaranties, letters of credit, monoline insurance, swaps, or similar types of arrangements. The second layer of loss protection is derived from a credit support asset purchase agreement provided by RBC and is equal to the greater of $100,000,000 or 10% of the outstanding CP. To facilitate the timely repayment of maturing CP, WP Funding is supported by liquidity facilities in an amount equal to 102% of the related asset and must be provided by financial institutions rated at least 'F1'. Liquidity facilities are made available to either WP Funding or WP Capital.

RBC will serve as administrative agent, collateral agent, and credit support provider while Deutsche Bank Trust Company Americas (rated 'A+/F1' by Fitch) will serve as depositary. Additionally, Global Securitization Services, LLC has been appointed as managing agent.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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 are also available from the 'Code of Conduct' section of this site.
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Publication:Business Wire
Date:Jan 5, 2006
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