Fitch Rts Navistar's Truck Engine Receivables Master Trust
29 November 2000
Fitch Rts Navistar's Truck Engine Receivables Master Trust
CHICAGO--Nov. 29, 2000--Fitch rates Truck Engine Receivables Master Trust's $100 million floating-rate trade receivable-backed notes, series 2000-1 `A'.The notes are backed by receivables due from Ford Motor Co. (Ford) arising from the sale of diesel engine and engine service parts by International Truck and Engine Corporation (International) to Ford for use in Ford trucks and vans. Navistar Financial Corporation, a wholly owned subsidiary of International, is the servicer. International is a wholly owned subsidiary of Navistar International Corporation.
The rating on the notes is based on Fitch's unsecured credit rating of Ford; the historical relationship between International and Ford; carrying cost, dilution and warranty cost reserves that periodically adjust for changes in dilutions and program costs; historical loss, dilution and warranty cost experience; the servicing experience of Navistar Financial Corporation; and the strong legal and payment structure of the transaction.
The deal structure includes a five-year revolving period to be followed by a one-year amortization period. Interest is expected to be paid monthly commencing in December 2000, and no principal payments will be made during the revolving period.
For more information on International, see Fitch Research on `Navistar International Corporation' dated March 16, 2000, available on Fitch's web site at `www.fitchratings.com'.
For more information on Navistar Financial Corporation, see Fitch's press release dated Nov. 15, 2000, available on Fitch's web site at `www.fitchratings.com'.