Promus Accept's CP Program Raised to 'A-1+' by S&P.NEW YORK--(BUSINESS WIRE)--Aug. 12, 1998--Standard & Poor's raised its rating on Promus Acceptance Corp.'s (PROMAC PROMAC Professional Management of Army Comptrollers Application PROMAC Program Managed Contracts Reports ) asset backed commercial paper program to 'A-1'-plus from 'A-1'. Upon the request of the program administrator, Chase Bank of Texas N.A., Standard & Poor's reviewed Promus Acceptance Corp. (PROMAC) for the upgrade. The rating upgrade is based on 100% program wide liquidity support and credit support provided by Societe Generale and a syndicate of banks rated 'A-1'-plus as well as an underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standard that is appropriate for an 'A-1'-plus conduit. The 'A-1'-plus rating is based on the following factors: -- A liquidity agreement from Societe Generale and a syndicate of banks rated 'A-1'-plus committed to lend funds to PROMAC up to the full amount of non-defaulted loans; -- 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 consisting of an irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is LOC LOC - lines of code , a loan loss reserve, and a limited guarantee from Promus Hotel Corp.; -- Performance triggers that protect noteholders against deterioration of the credit quality of the loan portfolio; and -- The bankruptcy-remote nature of PROMAC's structure. PROMAC is an independent, member owned, bankruptcy-remote, nonstock Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. . Its business activities are limited to issuing commercial paper and making loans to qualified members. Members of PROMAC are individuals who own one or more hotels from the Promus Hotel Corp. brands (Hampton Inn, Hampton Inn & Suites, Homewood Suites and Embassy Suites). -- CreditWire
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