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Fitch Ratings affirms 'F1sf' rating assigned to DCAT, LLC ABCP.

New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed the 'F1sf' rating assigned to the asset-backed commercial paper (ABCP) issued by DCAT, LLC following the completion of its annual review.

Fitch actively monitors all ABCP counterparty exposures on a daily basis and each program's underlying portfolio dynamics on a monthly basis. Each loan is supported by Caterpillar Financial Services Corporation in the form of a dealer loan purchase agreement that is available to be drawn upon when CP matures.

Its affirmation was based on a review of the conduit's credit and structural protections. DCAT is a fully supported program with liquidity provided by Caterpillar Financial Services Corporation (CFSC;A/F1/ Stable) in the form of a dealer loan purchase agreement. DCAT's ABCP and the loans it makes to dealers of Caterpillar (A/F1/Stable) equipment are match-funded so that both mature on the same day., If there is an insufficiency to pay noteholders in full when the ABCP matures, CFSC will purchase the maturing loan in the amount of such insufficiency.

The dealer loan purchase agreement serves as credit protection against losses on the loans. DCAT is a special-purpose, bankruptcy-remote limited liability company established in Delaware. The support contracts provide for cease-issuance and wind-down triggers when liquidity would not be available to support maturing CP.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Apr 7, 2018
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