Fitch Upgrades Sunbelt Funding Corp.'s Credit Enhancement to 'A'.NEW YORK -- Fitch upgrades the rating of Sunbelt Funding Corporation's programwide credit enhancement, provided in the form of Irrevocable Letter of Credit Irrevocable letter of credit Assurance of funds issued by a bank that cannot be canceled or amended without the beneficiary's approval. (LOC LOC - lines of code ) No. S27479A, to 'A' from 'A-'. The upgrade reflects the declining probability of any loss suffered by Compass Bank as the LOC provider. The improving credit quality of conduit's portfolio is evidenced by the positive trend of Vector CP model outputs. The 'A' rating withstands additional model runs under a more stressful scenario with respect to asset correlation. Sunbelt is a special purpose, bankruptcy-remote Delaware corporation whose primary purpose is the issuance of up to $2 billion 4(2) 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 . The proceeds of the CP are used to acquire and hold asset backed securities rated 'AAA' and agency securities. Liquidity support is in the form of either a liquidity asset purchase agreement or a liquidity loan agreement in an aggregate amount of 100% of outstanding CP. Sunbelt has a 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. layer of dynamic credit enhancement provided in the form of LOC, sized as the greatest of 1% of the face amount of all CP, 50% of the asset with the largest funded amount, or the amount determined by Vector CP. Vector CP, a proprietary Monte Carlo simulation Monte Carlo Simulation A problem solving technique used to approximate the probability of certain outcomes by running multiple trial runs, called simulations, using random variables. model developed by Fitch, is used as a primary analytical tool to rate the LOC. Each security in the program is input into the model and Vector CP will simulate the default behavior of these credit exposures, taking into account the rating distribution and correlation. Fitch will continue to monitor the performance of portfolio dynamics in the conduit, and adjust the rating of LOC when appropriate. 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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