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RENAISSANCE ASSET FUNDING CORP. $1 BILLION CP 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 21 /PRNewswire/ -- Renaissance Asset Funding Corp.'s (RAFCO) $1 billion asset-backed commercial paper program is rated 'F-1+'. The rating is based on minimum 10% program credit enhancement and 100% liquidity support for each receivables pool provided by Societe Generale and other third-party banks, and the structuring capability provided by Chemical Securities, Inc. (CSI).
 RAFCO, a bankruptcy-remote special purpose Delaware corporation, is a new joint-venture between Societe Generale and CSI created to securitize financial assets originated by both investment grade and non-investment grade sellers. RAFCO will issue CP and use the proceeds to acquire receivable pools on an offering basis. While the assets will consist primarily of high quality, short-term trade receivables, term receivables also will be eligible for the program.
 There are two layers of credit enhancement available to protect CP holders from losses. The first layer of loss protection is a minimum 7.5% reserve, which will be required for each receivable pool. In addition to pool specific overcollateralization, Societe Generale is providing minimum 10% program credit support. Until CP outstandings exceed $500 million, program credit enhancement can be as high as 33% based on rating agency requirements. The minimum program credit enhancement, combined with the required pool specific reserves, will provide total loss protection equal to at least 17.5%.
 Pool specific 100% liquidity support will be provided by Societe Generale, as well as other third-party banks, to assure full and timely payment of maturing CP notes. Full liquidity will be available under all circumstances except for a bankruptcy or insolvency of RAFCO, which Fitch feels is a remote event.
 CSI and Societe Generale will act as referral agents for the program and, in conjunction with CSI in its capacity as financial advisor to RAFCO, will evaluate and structure all asset purchases, negotiate and execute documentation, and continuously monitor asset performance.
 -0- 10/21/93
 /CONTACT: Steven B. Schoen 212-908-0615 or J. Douglas Murray 212-908-0518/


CO: ST: New York IN: FIN SU:

DH -- NY029 -- 5162 10/21/93 11:45 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
Words:336
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