Series 1998-C had displayed a cumulative net loss rate of 2.15%of the original pool balance after 22 months, and series 1999-Aturned in loss of 1.52%. In addition, both suffered frominsufficient monthly excess spread, causing over-collateralizationto slip further below the target level of 4.75%.
To support the original ratings, at Bombardier's request,letters of credit have been issued by Societe Generale SA for morethan $16.6 million for the 1998-C deal and over $11.3 million for1999-A. S&P believes this credit enhancement structure willallow the bonds to pay both principal and interest.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.