S&P Asgns Prl Rtgs to Jpn NPL Securitization By RCC.Business Editors TOKYO--(BUSINESS WIRE)--Dec. 13, 2002 Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. said today that it had assigned its preliminary ratings to RCC RCC - An extensible language. Trust II JPY JPY In currencies, this is the abbreviation for the Japanese Yen. 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. 9.5 billion floating-rate senior trust certificates classes 1-4 due 2007. This transaction, which has been arranged by Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Japan Ltd.,
involves the securitization SecuritizationThe process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of a pool of nonperforming loans (NPLs). The NPLs will be purchased from a number of sellers by Hawk Capital Ltd., a special purpose company established in the Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. , and will then be entrusted to Mitsubishi Trust & Banking Corp. and Resolution & Collection Corp., which will act as joint trustees JOINT TRUSTEES. Two or more persons who are entrusted with property for the benefit of one or more others. 2. Unlike joint executors, joint trustees cannot act separately, but must join both in conveyances and receipts, for one cannot sell without the others, for the transaction. Most of the NPLs in the pool are backed by highly liquid small and medium-sized real estate assets. Cashflow generated from the resolution of the portfolio loans will be used to make interest and principal payments on the senior trust certificates. In recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time number of NPL 1. NPL - New Programming Language. IBM's original (temporary) name for PL/I, changed due to conflict with England's "National Physical Laboratory." MPL and MPPL were considered before settling on PL/I. Sammet 1969, p.542. 2. securitizations has been increasing as Japanese banks speed up the disposal of their bad loans. Following the participation in this transaction of RCC, a government enterprise that plays a fundamental role in attempting to resolve Japan's bad loan problem, Standard & Poor's believes that this trend will accelerate. Standard & Poor's ratings address the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date of October 2007. The preliminary ratings are based on information as of Dec. 2, 2002. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. Final ratings will be assigned after the amount and terms of the notes are finalized and a full rating analysis has been concluded, including a satisfactory review of the final transaction structure, collateral pool, cash flow, and the necessary legal documents and opinions. The preliminary ratings are based on: -- The quality of the NPL receivables in the portfolio, which ultimately secures the senior classes of notes. The portfolio is made up of both real estate-secured loans and loans unsecured by real estate; -- Ample credit support provided by the subordinated classes of notes; -- The ability of the special servicer and the sub special servicer to realize proceeds from the liquidation of assets in a timely manner; -- Ample liquidity support provided by an interest rate reserve; and -- The sound nature of the transaction's legal structure. This transaction will utilize a fast pay structure under which interest and principal payments on the subordinated trust certificates will not be made until principal on the senior trust certificates has been redeemed in full, thereby providing internal credit support to the deal. In addition to the senior trust certificates, the trust will also issue a subordinated trust certificate and a super subordinated trust certificate, which will be retained by RCC and the trustor. Interest payments on the senior trust certificates will be made monthly, based on the 1-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus a different specified spread for each certificate class. PRELIMINARY RATINGS ASSIGNED JPY9.5 billion floating-rate senior trust certificates due 2007 CLASS PRELIMINARY AMOUNT PRELIMINARY RATING 1 JPY5.8 bil. AAA 2 JPY1.6 bil. AA 3 JPY1.2 bil A 4 JPY0.9 bil. BBB |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion