S&P Asgns Rtg to H2O's Eur5Bn Frnch and Eur ABCP Prgm.Business Editors PARIS--(BUSINESS WIRE)--July 16, 2003 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 assigned its 'A-1' credit rating to the up to 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. 5 billion French and European 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 program under which H2O S.A., an SPE SPE - Software Practice and Experience , will issue future series of notes. This is a multi-seller CP conduit program under which H2O will purchase securities or units from "fonds communs de creances" (FCCs) and, in certain cases, may purchase securities from the open market. These securities must be pools of amortizing or revolving receivables structured to a minimum short-term rating of 'A-1' and rated debt securities, instruments, or other financial assets Financial assets Claims on real assets. with a minimum long-term rating of 'A+' or with adequate 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 to meet Standard & Poor's requirements. The purchases will be financed through the issue of French CP ("billets de tresorerie") or European CP, which must be denominated in euros and other authorized currencies with maturities not exceeding 364 days. Credit Lyonnais (AA-/Stable/A-1+) acts as program administrator, liquidity provider, letter of indemnity Letter of Indemnity 1. A letter guaranteeing that contractual provisions will be met, otherwise financial reparations will be made. 2. A letter requesting replacements for lost shares from a company's treasury. Notes: 1. provider, and sponsor. "H2O is the second ABCP conduit sponsored by Credit Lyonnais in France after LMA LMA left mentoanterior (position of fetus). S.A., which closed in April 1998," said credit analyst Seow-Wah Teo at Standard & Poor's Structured Finance Ratings group in Paris. "The new program finances trade receivables originated by sellers located mostly in Europe, as well as the purchase of other investments such as appropriately rated securities." The rating is based on an analysis of the liquidity support (which equals 102% of CP outstanding), the credit quality of the assets to be purchased by the conduit, and the programwide credit enhancement put up by Credit Lyonnais to cover operational risks. H2O is a French public limited company ("societe anonyme"), which satisfies Standard & Poor's bankruptcy-remoteness criteria. The full postsale report for this transaction was published today and is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. Alternatively, call one of Standard & Poor's Ratings Desks: London (44) 20-7847-7400; Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or Stockholm (46) 8-440-5916. Members of the media may contact the Press Office Hotline on (44) 20-7826-3605 or via media_europe@standardandpoors.com. ANALYST E-MAIL ADDRESSES seow-wah_teo@standardandpoors.com chris_such@standardandpoors.com StructuredFinanceEurope@standardandpoors.com Copyright 2003, Standard & Poor's Ratings Services |
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