Standard & Poor (S&P)’s Ratings Services has assigned its preliminary AAA rating and preliminary underlying BB- rating to Turkiye Garanti Bankasi (Garanti)’s $200 million Diversified Payment Rights Finance floating-rate notes.
The preliminary AAA rating is based on the full financial guaranty insurance policy issued by MBIA Insurance Corporation. The preliminary ratings reflect information available as of September 24, 2003. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.
The rated transaction is a securitization of all current and future diversified payment rights (DPR) in the form of US dollar, euro and British pound sterling-denominated Society for Worldwide Interbank Financial Telecommunications (SWIFT) MT100 series payment order messages.
These payment order messages are a product of the international financial operations of Garanti, one of Turkey's leading banks. Payment orders are created as a result of Garanti's role as a financial intermediary between foreign payers wishing to send funds to Turkey and resident Turkish entities that are the recipients of these funds.
In addition to the standard DPRs generated by offshore entities, this transaction will also include certain DPRs generated through the offshore clearing, settling, and lending operations of Garanti and other onshore Turkish banks.
The transaction will not include payment orders generated from documentary trade credits, such as letters of credit or cash-against-documents instruments, as these are processed using different SWIFT category messages. The transaction uses an offshore payment collection mechanism and possesses other structural features designed to mitigate credit risk. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
