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PINNACLE FUNDING $91 MILLION COMMERCIAL PAPER RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

PINNACLE FUNDING $91 MILLION COMMERCIAL PAPER RATED 'F-1+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 12 /PRNewswire/ -- Pinnacle Funding Corp.'s $91 million asset-backed commercial paper program is rated 'F-1+' by Fitch. The rating is based on the credit quality of the lessees, the sound legal structure, the letter of credit (LOC) covering 23 percent of the C.P. program and the 100 percent liquidity facility both provided by Barclays Bank, Plc.
 Pinnacle Funding Corp. is a special purpose bankruptcy-remote corporation. The sole purpose of Pinnacle is to provide financing to purchase lease participations originated by subsidiaries of a major insurance company (lessors) leasing to a number of investment grade utilities (lessees). Pinnacle will fund the purchase of lease participations with the proceeds of the sale of commercial paper, or by obtaining loans under the credit agreement. Each participation entitles Pinnacle to its share of payments made to the lessors under the leases.
 The lease agreements are with 11 domestic electric, gas, and telephone utilities for nuclear fuel and fleet equipment. More than 98 percent of the lease participations are with lessees rated 'A-' or higher by Fitch, including 42 percent in the 'AA' category. The average lease term is three to ten years. Since the program's inception on Dec. 24, 1986, writeoffs on defaulted leases have been zero. Delinquencies, when they occur, have been generally in the 1-31 day category only.
 Credit support consists of a $21 million LOC provided by Barclays Bank Plc. The LOC will be drawn upon to cover any default in payments due under a lease by a lessee.
 Liquidity support is provided by a credit agreement with Barclays Bank Plc., currently in the amount of $91.18 million. The liquidity facility is available to provide liquidity support for the commercial paper notes and to make loans to purchase participations.
 -0- 12/12/91
 /CONTACT: J. Douglas Murray, 212-908-0518, or Robert Hornick, 212-908-0564, both of Fitch/ CO: Pinnacle Funding Corp. ST: IN: FIN SU: RTG


JT -- NY062 -- 2003 12/12/91 13:39 EST
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Publication:PR Newswire
Date:Dec 12, 1991
Words:340
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