S&P Affirms Direct Funding's BT and Euro CP Program.Business Editors July 1, 2002--Standard & Poor's said today that it affirmed its 'A-1+' rating on Diversified Receivables Conduit (DIRECT) Funding S.A.'s ("Direct Funding") EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 580 million euro-denominated "billets de tresorerie" (BT) and European CP program. The conduit was rated in May 2002. Direct Funding is a multiseller conduit designed to sell Designed to Sell is an HGTV American reality television show hosted by Clive Pearse. The show focuses on the fixing up and renovation of a home that is about to go on the market. It is one half hour long and is produced by Pietown Productions. The show began airing in 2004. credit protection, via the use of credit derivatives Credit Derivative Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents (private , on the rated assets or on the portfolios of trade receivables acquired by CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation Ixis Capital Markets (AAA/Stable/A-1+). In this, the first of two transactions so far in the conduit, Direct Funding provides protection on the rated assets purchased by CDC Ixis Capital Markets, and is supported by a unique liquidity mechanism. Claire Robert, ratings analyst at Standard & Poor's Structured Finance Ratings group in Paris, said that this was the first time that the group has rated a French asset-backed CP conduit involving releasable cash collateral in lieu of a conventional liquidity facility. "This involves mainly ensuring the cash collateral can be released by CDC Ixis Capital Markets as soon as needed as needed prn. See prn order. if and when CP cannot be repaid due to market disruption Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). , and interest on such collateral is match-funded to CP maturity dates." The proceeds of the CP are deposited as cash collateral in an account in the name of CDC Ixis Capital Markets. The collateral secures Direct Funding's payment obligations under the credit derivatives. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the terms of the cash collateral agreement, if a payment has to be made by Direct Funding, the amount of such payment will be off-set against the amount standing to the credit of the cash collateral account. The rating on the program reflects: -- The 'A-1+' rating on CDC Ixis Capital Markets as pledgee PLEDGEE. The same as pawnee. (q.v.) of the cash collateral deposit and thus liquidity provider, and the 'A-1+' rating on CDC Finance-CDC Ixis as account provider; -- The adequate credit support provided in the transaction; -- CP issuance tests to ensure that interest payments under the cash collateral are sufficient and timely to pay interest on CP when due; and -- The bankruptcy-remote nature of the issuer. A copy of Standard & Poor's complete postsale report for this conduit is available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. ANALYTICAL E-MAIL ADDRESSES claire_robert@standardandpoors.com herve-pierre_flammier@standardandpoors.com StructuredFinanceEurope@standardandpoors.com Copyright 2002, Standard & Poor's Ratings Services |
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