S&P Assigns `AAA` Rtgs to Y2.08B Hitachi Credit ABS
15 March 2000
S&P Assigns `AAA` Rtgs to Y2.08B Hitachi Credit ABS
TOKYO--March 15, 2000--Standard & Poor's has assigned its triple-'A' ratings to Hitachi Credit Auto Loan Trust Series 1 Certificates. The terms of each class of the certificates are as follows:-- Class 1: Y400 million, 0.16%;
-- Class 2: Y290 million, 0.26%;
-- Class 3: Y270 million, 0.46%;
-- Class 4: Y240 million, 0.58%;
-- Class 5: Y190 million, 0.75%;
-- Class 6: Y150 million, 0.88%;
-- Class 7: Y90 million, 1.05%;
-- Class 8: Y70 million, 1.19%;
-- Class 9: Y50 million, 1.36%; and
-- Class 10: Y330 million,1.01%.
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 June 2005. The Y2.08 billion trust certificates are backed by a pool of about Y2.15 billion of auto-loan receivables originated by Hitachi Credit Corp. (A+/Stable/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 first series of such trust certificates backed by Hitachi Credit's auto-loan receivables.
The ratings on the certificates are based on:
-- Overcollateralization of about Y67 million of auto-loan receivables, representing about 3% of the pool balance;
-- Cash reserve funded at closing with about Y43 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.