Bangkok--9 May--Moody's Investors Service
Moody's announced today that it has upgraded the following ratings originally assigned to the asset-backed securities as issued by three issuers:
1. Issuer: KAL Japan ABS 3 Cayman Limited
Yen 40,000 million of Secured Floating Rate Notes due February 2010
Rating upgraded to Aa3 from A3
2. Issuer: Asian Bond Fund II (Cayman) Limited
Yen 5,929 million of Senior Floating Rate Notes due 2009
Rating upgraded to Aa3 from A3
3. Issuer: KLC Funding Limited
US$ 110 million Secured Floating Rate Notes due 2007
Rating upgraded to A1 from A3
These rating actions come about after Moody's announcement of the Korea Development Bank's ("KDB") rating results following the application of the refined joint-default analysis (JDA) and updated bank financial strength rating (BFSR) methodologies.
The ratings on the asset-backed securities are closely linked to KDB's foreign currency debt rating for senior obligations, which is upgraded to Aa3 from A3. Any change to KDB's rating will most likely result in a corresponding adjustment to the rating assigned to the asset-backed securities.
For KAL Japan ABS 3 Cayman Limited, KDB provides an unconditional and irrevocable credit facility to, as well as an interest rate swap with, the notes issuer on timely payments of scheduled principal and interest on the secured floating rate notes. Both credit facility and interest rate swap are governed by English law.
For Asian Bond Fund II (Cayman) Limited, KDB provides an unconditional and irrevocable credit facility for the notes issuer's timely interest payments to the swap provider and timely principal payments on the senior floating rate notes. The credit facility is governed by English law.
For KLC Funding Limited, KDB provides an unconditional and irrevocable credit facility to a Korean bond issuer in support of its payment obligations under the senior bond. This senior bond is subscribed by the notes issuer who uses the interest and scheduled principal it receives on the senior bond to pay the secured floating rate notes. KDB's payment obligations are in Korea and the credit facility agreement is governed by the laws of the Republic of Korea, and the rating of the secured floating rate notes is upgraded to A1, which is the foreign currency country ceiling of Korea.
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
Jerome Cheng
VP - Senior Credit Officer
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