Bella Trust Series 2009-1 is a securitization of commercial hire
purchase, chattel mortgage, and secured loan contracts over motor
vehicles, originated by Capital Finance Australia Ltd.
We have assigned preliminary ratings on five classes of notes to be
issued by BNY Trust Co. of Australia Ltd. as trustee of Bella Trust
Series 2009-1.
The preliminary ratings reflect our opinion of the transaction's credit
support, collateral pool, servicer, and other features based on our
current criteria and assumptions.
MELBOURNE (Standard & Poor's) Nov. 5, 2009--Standard & Poor's Ratings Services
today assigned preliminary ratings to the notes to be issued by BNY Trust Co.
of Australia Ltd. as trustee of Bella Trust Series 2009-1 (see list). The
transaction is the first securitization undertaken by Capital Finance
Australia Ltd. (CFAL). The notes are backed by commercial hire purchase,
chattel mortgage, and secured loan contracts over motor vehicles that were
originated by CFAL.
The preliminary ratings are based on information as of Nov. 5, 2009.
Subsequent information may result in the assignment of final ratings that
differ from the preliminary ratings.
The preliminary ratings reflect our opinion of the capacity of the issuer
to make interest payments in full on each interest payment date and full
repayment of principal to note holders by no later than the legal maturity
date, in accordance with the terms and conditions of the documents governing
the notes.
The rationale for the assignment of the preliminary ratings includes:
Our view of the credit risk of the underlying portfolio of receivables;
Our expectation that the credit support for each class of notes is
sufficient to withstand the stresses we apply;
Our expectation that the various mechanisms within the transaction to
support liquidity will provide for timely payment of interest under our
stress assumptions; and
Our view of the swap provided by Bank of Scotland PLC, Australia Branch
(A+/Stable/A-1) to hedge the mismatch between the fixed rate payments on
the receivables and the floating-rate coupon payable on the class A-2
notes.
A copy of Standard & Poor's complete presale report for Bella Trust Series
2009-1 can be found on RatingsDirect, at www.globalcreditportal.com.
RELATED RESEARCH
This article is based in part on the following criteria articles:
Standard & Poor�??s To Explicitly Recognize Credit Stability As An
Important Rating Factor, published Oct. 15, 2008
Principles-Based Rating Methodology For Global Structured Finance
Securities, published May 29, 2007
Auto Loan Criteria, published Sept. 28, 2004
PRELIMINARY RATINGS ASSIGNED
Bella Trust Series 2009-1
Class Rating Amount (mils. A$)
A-2 AAA 500.0
B A 51.0
C BBB 23.0
D BB 8.1
E B 8.1
Seller Not rated 31.1
Ratings are statements of opinion, not statements of fact or
recommendations to buy, hold, or sell any securities. Standard & Poor's
(Australia) Pty. Ltd. does not hold an Australian financial services license
under the Corporations Act 2001. Any rating and the information contained in
any research report published by Standard & Poor's is of a general nature. It
has been prepared without taking into account any recipient's particular
financial needs, circumstances, and objectives. Therefore, a recipient should
assess the appropriateness of such information to it before making an
investment decision based on this information.
