S&P Rates Hitachi Credit Auto Loan Trust Certificates 'AAA'
15 June 2000
S&P Rates Hitachi Credit Auto Loan Trust Certificates 'AAA'TOKYO - Standard & Poor's today assigned its triple-'A' ratings to Hitachi Credit's Auto Loan Trust Series 4 Certificates. Standard & Poor's ratings address the full and timely payment of interest and the full repayment of principal by the legal final maturity date of September 2005. The JPY1.59 billion trust certificates are backed by a pool of about JPY1.65 billion of auto loan receivables originated by Hitachi Credit Corp. (A+/Negative/A-1) and entrusted to Toyo Trust & Banking Co. Ltd. Hitachi Credit is a leading finance company in Japan, and a group company of Hitachi Ltd., an integrated electronics maker in Japan. Hitachi Credit is planning to securitize newly originated auto loan receivables every month using the same structure. This transaction is the fourth series of such trust certificates backed by Hitachi Credit's auto loan receivables. The ratings on the certificates are based on: -- Overcollateralization of about JPY58 million of auto loan receivables, representing about 3% of the pool balance; -- Cash reserve funded at closing with about JPY25 million; -- Redemption alteration events that will convert principal redemption to a pass-through structure under certain adverse circumstances; -- Monthly advances by the servicer of scheduled auto loan contract payments and additional advances of stressed estimated principal prepayments if the servicer's rating is lowered below 'A-1'; and -- An excellent track record of historical losses, Standard & Poor's said. --CreditWire RATINGS ASSIGNED Auto Loan Trust Series 4 Issue Amount Rating Class 1 JPY330 million 0.16% notes AAA Class 2 JPY200 million 0.31% notes AAA Class 3 JPY230 million 0.48% notes AAA Class 4 JPY160 million 0.60% notes AAA Class 5 JPY160 million 0.75% notes AAA Class 6 JPY100 million 0.87% notes AAA Class 7 JPY80 million 1.02% notes AAA Class 8 JPY50 million 1.14% notes AAA Class 9 JPY280 million 1.03% notes AAA