S&P Assigns Ratings to Sanwa Capital One Japanese ABS.

Business Editors

TOKYO--(BUSINESS WIRE)--July 18, 2003

Standard & Poor's--Standard & Poor's Ratings Services said today that it had assigned ratings to Sanwa Capital One Special Purpose Co.'s (Sanwa Capital One) JPY12.2 billion class A and class B floating-rate notes due January 2012 (see list below).

The notes have been issued through the repackaging of the class A and class B limited recourse secured loans (ABLs) originally extended to Orix Trust and Banking Corp. (Orix Trust), the trustee in this transaction, by Bayerische Hypo- und Vereinsbank AG Tokyo Branch (HVB Bank Tokyo). The ABLs are ultimately secured by approximately JPY16.1 billion in unsecured consumer loan receivables originated by Sanwa Finance Co. Ltd. (Sanwa Finance). This transaction marks the sixth securitization of unsecured consumer loan receivables by Sanwa Finance.

The ratings address the full and timely payment of interest and the ultimate full repayment of principal by the legal final maturity of January 2012.

The ratings are based on:

-- Overcollateralization of unsecured consumer loan receivables

equivalent to at least 20% of the note issue amount;

-- An ample cash reserve established at closing to provide

sufficient liquidity support to the transaction in the event

of a servicer transition;

-- The establishment of a dynamic reserve to support the

liquidity of the transaction in the event of adverse

developments, such as a rise in the delinquency rate or the

rate of 'kaiyaku saiken' (defined as receivables delinquent

for over 15 days, in line with Sanwa Finance's guidelines);

-- The establishment of early amortization trigger events. The

transaction will convert to a turbo pass-through structure

following a trigger event;

-- The appointment of MCS Servicer Co. Ltd (MCS Servicer) as a

backup servicer at closing;

-- Commingling risk is covered by a minimum seller's beneficial

interest, which will be maintained during the transaction

term; and

-- The status of Sanwa Capital One as a bankruptcy-remote,

special-purpose entity.

RATINGS ASSIGNED
JPY12.2 billion floating-rate notes due Janauary 2012
CLASS                       AMOUNT                   RATING
A                           JPY11 bil.               AA
B                           JPY1.2 bil.              A

Copyright 2003, Standard & Poor's Ratings Services