TEXT-S&P:Honu Finance's series 2012-4 deal asgnd 'A-' rtg

Thu Apr 12, 2012 2:42am EDT

RELATED CRITERIA AND RESEARCH

"Japanese Structured Finance Scenario And Sensitivity Analysis: The Effects Of Major Macroeconomic Factors," April 6, 2012

"Nippon Standard & Poor's K.K. Announces Registration As Credit Rating Agency In Japan," Jan. 31, 2012

"Principles Of Credit Ratings," Feb. 16, 2011

"European Legal Criteria For Structured Finance Transactions," Aug. 28, 2008

"Global Synthetic Securities Criteria: Third-Party Roles In Synthetic Securities," June 1, 1999

"Global Synthetic Securities Criteria: Swap Agreement Criteria," June 1, 1999

RATING ASSIGNED

Honu Finance Ltd.

JPY1 billion series 2012-4 limited-recourse secured fixed-rate notes due 2014

Rating Amount Coupon type O/C ratio Legal final maturity

A- JPY1 bil. Fixed rate 0.0% March 2014

The transaction's closing date is April 12, 2012.

NOTES

The basic approach to calculating the overcollateralization (O/C) ratio is as follows:

1-(A+B)/(C-D-E)

A: the rated obligations and equally ranked obligations

B: prior obligations to the rated obligations

C: underlying assets (including cash)

D: liquidity reserves

E: obligations, except for senior, mezzanine, or subordinate obligations

(seller's interest, etc.)

In the case of a master trust structure, the series base value should be applied.

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