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DCR Rates Commercial Paper of CATD 'D-1+'

CHICAGO, Jan. 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has assigned a 'D-1+' (D-One Plus) rating to the Series A and Series B commercial paper (cp) notes issued by Cooperative Association of Tractor Dealers, Inc. (CATD).

CATD is a cooperative corporation, providing unsecured and secured financing for heavy equipment Caterpillar Dealers. CATD provides working capital loans for its member dealers through the issuance of commercial paper.

Credit protection for the commercial paper notes is provided through surety bond agreements with Capital Markets Assurance Corporation (CapMAC) and AMBAC Indemnity Corporation (AMBAC). CATD Series A cp will be fully credit enhanced by CapMAC surety bonds while Series B cp will be fully credit enhanced by AMBAC surety bonds.

The surety bonds are composed of a dealer bond and a liquidity bond. Under the dealer bond, CapMAC and AMBAC guarantee the repayment of principal and interest of the dealer loans to CATD, when Tuckahoe Funding Co. (Tuckahoe) is not able to purchase the defaulted loan. Tuckahoe, a special purpose corporation, has been set up to purchase defaulted loans from CATD. Under the liquidity bonds, CapMAC and AMBAC guarantee the repayment of dealer loans purchased by Tuckahoe.

The rating of the program is based upon the following: the strong historical performance of the previous CATD program, the strong legal and payment structures of the program and the full credit and liquidity protection available for the securities.

SOURCE Duff & Phelps Credit Rating Co.
 -0- 01/21/97

/CONTACT: Philip S. Byun, 312-368-2066, or, or Russell Thomas, 312-368-3189, or Jeffrey Orr, 312-368-3335, or, all of Duff & Phelps Credit Rating Co./

CO: Cooperative Association of Tractor Dealers, Inc. ST: IN: AUT SU: RTG

LH -- NYTU106 -- 0891 01/21/97 12:53 EST
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Publication:PR Newswire
Date:Jan 21, 1997
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