Bangkok--17 Apr--Moody's
Moody's Investors Service has assigned prospective ratings of (P)Aaa and (P)A2 to two classes of notes to be
issued by Murcie Lago International 2006-1 Limited. It is a repackaged transaction to be backed by Aa3-rated US$ 400 million ABS notes held by Merrill Lynch Mortgage Capital Inc. The transaction is arranged by Merrill Lynch (Asia Pacific) Limited.
The complete rating action is as follows: Issuer: Murcie Lago International 2006-1 Limited US$374,700,000 Class A Floating Rate Notes due 2011, rated (P)Aaa US$25,300,000 Class B Floating Rate Notes due 2011, rated (P)A2
The prospective ratings address the expected loss posed to investors by the legal final maturity date in March 2011. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments, have not been addressed, and they may have a significant impact on the yield to investors.
The prospective ratings are based on the credit quality of the underlying collateral, being a Moody's-rated Aa3 ABS notes ("ABS notes"), which are in turn, backed by consumer finance receivables in Korea, and the legal and structural integrity of the transaction.
The notes issuer will issue the Class A floating rate notes and the Class B floating rate notes ("rated notes") and one class of unrated interest only notes with a notional of US$400 million. According to Moody's, the rated notes will have a payment timeline and terms largely matching those of the underlying ABS notes, thus providing a direct pass-through
structure with little mismatch.
However, there will be an interest rate mismatch between interest to be received on the ABS notes and the itnerest due on the Class B notes which are paying a higher spread than the ABS notes. This negative margin is expected to be absorbed by the reserve account in the transaction.
The provisional rating is issued in advance of the final issue of the notes and reflects Moody's preliminary credit opinions regarding the transaction only. Moody's makes no representations that the provisional rating will be the same as the definitive rating.
Moody's Investors Service is a publisher of rating opinions and research.
It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold or sell securities.
Hong Kong
Min Ye
Managing Director
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 2916-1121
Hong Kong
Marie Lam
Vice President - Senior Analyst
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 2916-1121