TEXT-S&P: Sandy's impact on US small business deals likely limited

Nov 15 - Standard & Poor's Ratings Services today stated that the impact of
Hurricane Sandy will likely have a limited impact on publicly rated U.S. small
business loan securitizations. These transactions are asset-backed
securitizations backed by payments from small-business loans consisting of both
conventional and SBA (Small Business Association) 7(a) small business loans.

Standard & Poor's performed a preliminary review of its 44 rated small
business transactions to determine which contained loans made to properties
located in areas covered by FEMA Major Disaster Declarations. The following is
a breakdown of the number of transactions and the percentage of their
collateral pool potentially exposed to properties in areas affected by
Hurricane Sandy:

No. of deals % of prop. in areas affected by storm
24 0%
7 Less than 2%
7 Between 2.01% and 5%
4 Between 5.01% and 10%
2 Between 10.01% and 17.06%

We will continue to review the small-business transactions and assess their
exposure to properties affected by the storm. Our review will also involve
examining each transaction's current available credit enhancement including
overcollateralization rate, excess spread, and reserve account balances. In
addition, we will consider sensitivity tests assuming different levels of
delinquency, default, and recovery for the loans in the affected area and will
assess how well the transaction can withstand such stresses. Further, we will
review the loan characteristics including lien status (first lien vs. second
lien), origination year, size, and diversification of obligors and industry.

Standard & Poor's will continue to monitor the small business loan
securitizations it rates and take rating actions, including CreditWatch
placements, when appropriate.

Standard & Poor's, a part of The McGraw-Hill Companies (NYSE:MHP), is the
world's foremost provider of credit ratings. With offices in 23 countries,
Standard & Poor's is an important part of the world's financial infrastructure
and has played a leading role for 150 years in providing investors with
information and independent benchmarks for their investment and financial
decisions.