S&P Assigns Prlm Rtgs in Sofinloc's Receivables Deal

    LONDON--Standard & Poor's--Oct. 30, 2002--Standard & Poor's Ratings Services said today that it assigned its preliminary credit ratings to the asset-backed floating-rate notes to be issued by special-purpose entity LTR Finance No. 4 PLC (see list below).
    The notes will be backed by a portfolio of receivables from automobile long-term rental agreements, automobile leasing contracts, equipment leases, and automobile loan contracts. The receivables were originated in Portugal and Spain by Sofinloc S.A., Sofinloc Rent, Sofivenda S.A., and Banco Finantia Sofinloc, all of which form part of the Sofinloc group.
    "This is the fourth LTR Finance transaction and the first that uses a fund in Portugal," said Chris Such, a director at Standard & Poor's Structured Finance Ratings group in London. "By using this fund the originators have the option of selling further receivables to the fund, which would issue further units to the issuer, who would in turn issue further notes. The Spanish receivables will be sold directly to the issuer."
    The preliminary ratings reflect the ability of the servicers to perform their role in this transaction, the sound payment structure, and the cash flow mechanics of the transaction.
    Other rating considerations include:

--	The analysis performed on the portfolio of assets to be transferred to Sofinloc No. 1 Fundo, a Portuguese securitization fund ("fundo de titularizacao de creditos" or FTC) and the assets to be transferred to the issuer;
--	The strong protection for noteholders provided by the level of subordination, excess spread, and a cash reserve, which will be funded to 2.5% at closing and will accumulate from excess spread to 4.5% of the original balance of the notes at closing;
--	The suitability of the servicers in fulfilling their role in this transaction as confirmed by on-site reviews of their operations carried out by Standard & Poor's;
--	The hedging arrangements, which will insulate the issuer from fixed/floating and basis interest rate risks, and the credit quality of Deutsche Bank AG (AA-/Stable/A-1+), as swap counterparty;
--	The sound payment structure and cash flow mechanics of the transaction.

    The full presale report for this transaction can be found on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The presale can also be found on Standard & Poor's new Web site at www.standardandpoors.com. Click "Fixed Income" and find the article under "Presale Credit Reports".

PRELIMINARY RATINGS ASSIGNED
LTR Finance No. 4 PLC
EUR200 Million Floating-Rate Asset-Backed Notes
Class        Rating        Amount (Mil. EUR)
A            AAA           169.5
B            AA             10.0
C            A              10.5
D            BBB            10.0

    ANALYST E-MAIL ADDRESSES
    chris_such@standardandpoors.com
    StructuredFinanceEurope@standardandpoors.com

    Copyright 2002, Standard & Poor's Ratings Services