Chariot Funding LLC -- Moody's ABCP activity ending 10 December 2020
Announcement: Moody's ABCP activity ending 10 December 2020
Global Credit Research - 10 Dec 2020
New York, December 10, 2020 -- RATINGS ACTIVITY ON US ABCP PROGRAMS THROUGH 10 DECEMBER 2020
Moody's announced today that the addition and amendment to the programs described below would not in and of themselves as of the date indicated below, result in, as the case may be, a reduction, placement on review for possible downgrade or withdrawal of Moody's current rating of the programs' notes described below.
BEDFORD ROW AMENDS PROGRAM DOCUMENTS
Moody's issued a RAC letter on 3 December 2020
Bedford Row Funding Corp. (Bedford Row), a fully supported, multi-seller ABCP program administered by Royal Bank of Canada (RBC), extended the maturity dates for the program's liquidity loan agreement and master loan and security agreement for each of its approved borrowers to December 2024. The amendment is credit neutral and has no impact on the current credit quality of Bedford Row's ABCP.
Bedford Row has approximately $9.2 billion in outstanding ABCP.
JPMORGAN'S CHARIOT ADDS $1.1 BILLION FFELP STUDENT LOAN FACILITY
Moody's issued a RAC letter on 25 November 2020
Chariot Funding LLC (Chariot), a partially supported, multi-seller ABCP program sponsored and administered by JPMorgan Chase Bank N.A. (JPMorgan), has added a $1.1 billion interest in an amortizing facility backed by FFELP student loans. FFELP student loans have a minimum of a 97% government guarantee from the US government. Additionally, this facility has a $500,000 cash reserve. Liquidity will not be available to fund for charged-off receivables of the unguaranteed portion of the facility and will cover the ABCP interest through the maturity of notes.
Chariot's program-level credit enhancement is required to be increased by 10% of outstandings, excluding outstandings issued for fully supported ABCP. Currently the stated amount of available enhancement is $2 billion, which is greater than the required amount. Chariot had approximately $23.6 billion dollars of purchase limits and $17.1 billion of outstanding ABCP.
Moody's opinions address only the credit impact associated with the addition and amendment to the programs described above, and Moody's is not expressing any opinion as to whether the addition or amendment have, or could have, other non-credit related effects that may have a detrimental impact on the interest of noteholders of rated obligations and/or counterparties.
The principal methodology used in reaching this conclusion and in monitoring the ratings of the notes issued by the program is "Moody's Approach to Rating Asset-Backed Commercial Paper" published in 8 July 2020. Please see the Rating Methodologies page on moodys.com for a copy of this methodology.
ABCP RESEARCH THAT WE PUBLISH
We monitor and analyze ABCP programs that we rate on an ongoing basis. A detailed description of each program is published in the ABCP Program Review with respect to such program. Some ABCP programs have updated performance information, which is published in the Performance Overviews. All ABCP publications are available on the ABCP page on moodys.com.
MOODY'S UPDATES ABCP QUERY
Moody's has published its monthly ABCP Query product with updated information as of 30 September 2020. All programs we rate globally are complete through September 2020. ABCP Query can be found on the ABCP page under the Related Information.
MOODY'S UPDATES GLOBAL ABCP PROGRAM TRACKER
Moody's has published its Global ABCP Program Tracker with updated information for the third quarter 2020 period. This report is published quarterly and can be found here:
https://www.moodys.com/research/Moodys-Global-ABCP-Program-Tracker-3Q2020--PBS_1256572?=
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Peter Li Asst Vice President - Analyst Structured Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Lisa Singman VP - Sr Credit Officer/Manager Structured Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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