Moody's assigns Prime-1 ratings to three RBC Canadian ABCP programs

Moody’s assigns Prime-1 ratings to three RBC Canadian ABCP programs

Total authorized amount is $13.3 billion

By: IE Staff
February 20, 2008 February 20, 2008
08:10

Moody’s Investors Service has assigned Prime-1 ratings to Plaza Trust, PURE Trust, and Storm King Funding, three prior review, partially supported multi-seller Canadian asset-backed commercial paper programs (ABCP) sponsored and administered by Royal Bank of Canada.

Plaza and Storm King are Canadian trusts established by CIBC Mellon Trust Co., as issuer trustee. PURE is a Canadian trust established by The Canada Trust Co. as issuer trustee. The trusts are structured to provide for bankruptcy remoteness in a manner consistent with Moody’s Prime-1 rating.

The assets purchased and notes issued can be denominated in both Canadian dollars and U.S. dollars. All transactions funded by each program are subject to Moody’s prior review.

Plaza was established in November 2001 to purchase varying types of receivables including term and trade receivables. As of October 2007, Plaza financed 17 asset interests, with aggregate purchase limits of approximately $3.98 billion. There are five asset types in Plaza’s portfolio program. The primary assets types are retail auto loans and leases.

PURE was established in December 1994 to purchase varying types of receivables including term and trade receivables. As of October 2007, PURE financed 18 asset interests, with aggregate purchase limits of approximately Canadian $4.61 billion. There are five asset types in PURE’s portfolio. The primary asset types are automotive finance, equipment finance and trade receivables.

Storm King was established in January 1999 to purchase varying types of receivables including term and trade receivables. As of October 2007, Storm King financed 18 asset interests, with aggregate purchase limits of approximately Canadian $4.69 billion. There are five asset types in Storm King’s portfolio. The largest three asset types are automotive finance, equipment finance and trade receivables.

The notes issued are standard ABCP with a tenor of up to 270 days for Plaza, 360 days for PURE and up to 364 days for Storm King. As of October 2007, the outstanding ABCP was Canadian $3.87 billion for Plaza, Canadian $4.15 billion for PURE and Canadian $3.82 billion for Storm King.

In addition to these three Canadian conduits, RBC sponsors and administers three ABCP programs in the U.S., Old Line Funding LLC, Thunder Bay Funding LLC, and White Point Funding Inc. These three programs all have Prime-1 ratings from Moody’s.