S&P Rates Eden Park Trust No. 1 Notes AAA/A.
A rating of single-'A' has been assigned to the A$6 million subordinated floating-rate class B notes due Oct. 15, 2003. This is the first securitization of automobile and equipment commercial hire purchase receivables which have been originated by Orix Australia Corp. Ltd. (ORIX). The credit support for the triple-'A' rated class A1 and class A2 senior notes is 6.5% of the total notes issued by Eden. This credit support consists of class B note subordination of 3% and unrated seller note subordination of 3.5%. The credit support for the single-'A' rated notes is 3.5%, consisting of the unrated seller-note subordination.
The ratings on the class A1 and class A2 notes reflects:
-- The credit quality of the underlying receivables;
-- The credit support in the transaction that is nonamortizing during the life of the transaction;
-- Credit analysis that is based on zero benefit to recoveries;
-- The diversified receivables pool by geographic location, receivable type, and obligor industry;
-- The ability of principal to fund interest;
-- A fixed-to-floating rate interest rate swap from an appropriately rated counterparty;
-- The inclusion of trigger events and cash retention events during the 12 month substitution period; and
-- Loss trigger protection that will force the remaining spread to be captured within the transaction.
Eden was established in the Australian Capital Territory (ACT) as a bankruptcy-remote special-purpose trust. A security trustee holds a first fixed-and-floating charge over the assets of Eden for the benefit of its secured creditors, including noteholders and the interest rate swap counterparty. Eden will issue the rated notes and unrated seller note, and use the proceeds of the notes to initially purchase, via equitable assignment, an A$207 million pool of fixed-rate commercial hire purchase contracts, and associated receivables interests.
In the first 12 months of the transaction, Eden is able to apply all principal collections toward the purchase of new receivables; however, principal collections will be applied first to make principal draws to fund interest, then to purchase additional receivables. The purchase of new receivables is subject to the receivables complying with documented eligibility criteria. Standard & Poor's expects the full payment of interest and principal on the notes, before or on the maturity date, will be in line with the terms and conditions of the notes, Standard & Poor's said. -- CreditWire
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|Date:||Nov 5, 1998|
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