Fitch Ratings Affirms ASAP's 'F1+' Secured Liquidity Note Program.Business Editors NEW YORK--(BUSINESS WIRE)--May 7, 2002 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 ASAP (chat) asap - As soon as possible. Funding Limited/ASAP Funding Inc.'s (ASAP) secured liquidity note (SLN SLN Sentinel Lymph Node SLN SUNY (State University of New York) Learning Network SLN Science Learning Network SLN Special Local Need SLN Sri Lanka Navy SLN Superior Laryngeal Nerve Sln Slovene (linguistics) ) program's 'F1+' rating following the incorporation of several structural amendments. The program's amendments include: increasing the program's maximum authorized amount to $3 billion from $1.5 billion and modifying the investment eligibility criteria to allow ASAP to invest up to 5% in assets rated 'A/F1' and hold up to 10% of such assets upon downgrade (previously all assets had to be rated at least 'AA-/F1+' at the time of purchase). ASAP is sponsored by Alliance Capital Management L.P. (Alliance), which is rated 'A+/F1' by Fitch. Fitch's affirmation of ASAP's 'F1+' rating is based on the protection afforded SLN investors through a market value swap provided by Citibank, N.A. (Citibank) (rated 'AA/F1+') and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , N.A. (Bank America) (rated 'AA/F1+') in an amount equal to the program's maximum authorized amount ($3 billion). Under the swap agreement, Citibank and Bank America each have commitments equal to 50% of the maximum authorized outstanding SLN amount. Citibank and Bank America are 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 pay the realized losses in market value of investments upon disposition as well as accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. on the SLNs and certain expenses in connection with the issuance of SLNs and the investment portfolio. Upon a swap counterparty having its credit rating withdrawn or reduced below 'AA-/F1+', the downgraded counterparty has 30 days to enter into a credit support agreement to cash collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. its commitment or Alliance, as investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , has 30 days to find an eligible replacement. ASAP Funding Limited, a bankruptcy-remote special purpose limited liability company organized under the laws of the Cayman Islands, and its wholly-owned Delaware subsidiary, ASAP Funding Inc., as co-issuer, have been established to issue U.S. dollar-denominated SLNs, respectively. The SLNs are issued with expected maturities ranging from one to 180 days with final maturities of 270 days from the initial date of issuance. The expected maturity date of SLNs may become extended if: (1) market conditions do not allow ASAP to issue additional SLNs, or, (2) there is expected to be an excess spread shortfall. If ASAP continues to be unable to issue SLNs in an amount sufficient to retire all extended SLNs, the investment portfolio will be liquidated to repay such extended SLNs. Extended SLNs will accrue interest at one-month London Interbank Offered Rate London Interbank Offered Rate A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars. plus 25 basis points. Alliance, as investment advisor, is responsible for providing ASAP with assistance and advice in connection with the acquisition and management of certain investments, instruments and other financial assets contained in the investment portfolio. Additionally, Alliance monitors asset performance to ensure compliance with ASAP's investment eligibility criteria, and administers the issuance, sale, and timely payment of the SLNs. |
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