Standard & Poor (S&P)'s has assigned its AAA rating to Turkey’s Garanti Diversified Payment Rights Finance’s $200 million floating-rate notes series 2003-A. The AAA rating is based on the full financial guaranty insurance policy issued by MBIA Insurance Corporation.
The series 2003-A notes were also assigned an underlying rating of BB-. The rated transaction is a securitization of all current and future diversified payment rights (DPRs) 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 Turkiye Garanti Bankasi (Garanti), one of Turkey's leading banks. Payment orders are created as a result of Garanti's role as a financial intermediary between foreign payors 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 LOCs 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.
The notes will pay interest quarterly at a rate of three-month US dollar LIBOR plus a margin on the ninth of January, April, July, and October. The notes mature in October 2008. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
