S&P: Hydra Funding Class J Bonds Upgraded by Two Notches |
Standard & Poor's Ratings Services today raised to 'AAA (sf)' from 'AA (sf)' its rating on the class J unsecured bonds issued by Hydra Funding Corp. (see list below). At the same time, Standard & Poor's affirmed its 'AAA (sf)' ratings on classes S-1, S-3, and S-4, issued under the same transaction (also listed below). Hydra Funding Corp.'s class S-2 and class O unsecured bonds have already been fully redeemed.
Today's rating actions are part of our regular review. In analyzing the credit quality of the aforementioned transaction, we examined the data contained in the reports that we receive each month from the servicer and trustee. Through this review we confirmed that the performance of the underlying loan receivables is in line with our assumptions, and the level of credit support for the underlying asset pool has risen, reflecting the progress of principal redemption for the senior class bonds. Accordingly, we raised our rating on class J.
The class J bonds issued by Hydra Funding were originally backed by a pool of housing loan receivables and real estate-backed loans originated by the former Nippon Home Finance Co. Ltd. (now known as Star Capital Co. Ltd.), the former Good Loan Co. (SBI Mortgage Co. Ltd.), the former Daihyaku Mutual Life Insurance Co. (Manulife Life Insurance Co.), and the former L-Kakuei Corp. (Joint Residential Fudosan). The housing loan receivables and real-estate backed loans were then transferred to Shinsei Trust & Banking Co. Ltd.
Standard & Poor's ratings address the full and timely payment of interest and the ultimate full repayment of principal by the transaction's legal finalmaturity in July 2033 for the class S-1, S-3, and S-4 bonds, and the full payment of interest and repayment of principal by the transaction's legal final maturity for the class J bonds.
RATING RAISED
JPY89.2 billion fixed and floating rate bonds
Class To From Initial Issue Amount
J* AAA (sf) AA (sf) JPY2.5 bil.
* Deferred interest
RATINGS AFFIRMED
Class Rating Initial Issue Amount
S-1 AAA (sf) JPY75.0 billion
S-3 AAA (sf) JPY2.8 billion
S-4 AAA (sf) JPY2.0 billion
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