NEW YORK (Standard & Poor's) Dec. 17, 2012--Standard & Poor's
Ratings Services today assigned its preliminary ratings to
Madison Park Funding X Ltd./Madison Park Funding X LLC's $717.0
million floating-rate notes (see list).
The note issuance is collateralized loan obligation
securitization backed by a revolving pool consisting primarily
of broadly syndicated senior-secured loans.
The preliminary ratings are based on information as of Dec.
17, 2012. Subsequent information may result in the assignment of
final ratings that differ from the preliminary ratings.
The preliminary ratings reflect our view of:
-- The credit enhancement provided to the preliminary rated
notes through the subordination of cash flows that are payable
to the subordinated notes.
-- The transaction's credit enhancement, which is sufficient
to withstand the defaults applicable for the supplemental tests
(not counting excess spread), and cash flow structure, which can
withstand the default rate projected by Standard & Poor's CDO
Evaluator model, as assessed by Standard & Poor's using the
assumptions and methods outlined in its corporate collateralized
debt obligation (CDO) criteria, (see "Update To Global
Methodologies And Assumptions For Corporate Cash Flow And
Synthetic CDOs," published Sept. 17, 2009).
-- The transaction's legal structure, which is expected to
be bankruptcy remote.
-- The diversified collateral portfolio, which consists
primarily of broadly syndicated speculative-grade senior secured
-- The portfolio manager's experienced management team.
-- Our projections regarding the timely interest and
ultimate principal payments on the preliminary rated notes,
which we assessed using our cash flow analysis and assumptions
commensurate with the assigned preliminary ratings under various
interest-rate scenarios, including LIBOR ranging from 0.3489% to
-- The transaction's overcollateralization and interest
coverage tests, a failure of which will lead to the diversion of
interest and principal proceeds to reduce the balance of the
rated notes outstanding.
-- The transaction's reinvestment overcollateralization
test, a failure of which will lead to the reclassification of
excess interest proceeds that are available prior to paying
uncapped administrative expenses and fees; subordinated hedge
termination payments; portfolio manager incentive fees; and
subordinated note payments to principal proceeds for the
purchase of additional collateral assets during the reinvestment
period and to reduce the balance of the rated notes outstanding,
sequentially, after the reinvestment period.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7
requires an NRSRO, for any report accompanying a credit rating
relating to an asset-backed security as defined in the Rule, to
include a description of the representations, warranties and
enforcement mechanisms available to investors and a description
of how they differ from the representations, warranties and
enforcement mechanisms in issuances of similar securities.
The Standard & Poor's 17g-7 Disclosure Report included in
this credit rating report is available at "".
RELATED CRITERIA AND RESEARCH Related Criteria --
Counterparty Risk Framework Methodology And Assumptions, May 31,
2012 -- Methodology For Analyzing Rating Confirmation Requests
To Establish Subsidiary Special-Purpose Entities in CDOs, Dec.
9, 2009 -- Update To Global Methodologies And Assumptions For
Corporate Cash Flow And Synthetic CDOs, Sept. 17, 2009 -- The
Use Of Rating-Based Haircuts In Event Of Default
Overcollateralization Tests For CDOs, March 19, 2008 --
Qualification And Treatment Of Current-Pay Obligations In Global
Cash Flow CLOs, July 11, 2007 -- CDO Spotlight: Update To
General Cash Flow Analytics Criteria For CDO Securitizations,
Oct. 17, 2006 -- Structured Finance Criteria Introduced for
Cayman Islands Special-Purpose Entities, July 18, 2002 -- Global
Cash Flow and Synthetic CDO Criteria: The CDO Product, March 21,
2002 Related Research -- Presale: Madison Park Funding X
Ltd./Madison Park Funding X LLC, Dec. 17, 2012 --
Global Structured Finance Scenario And Sensitivity Analysis:
The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
PRELIMINARY RATINGS ASSIGNED
Madison Park Funding X Ltd./Madison Park Funding X LLC Class
Rating Amount (mil. $) X AAA 4.00 A-1a AAA (sf) 300.00 A-1b AAA
(sf) 15.75 A-2 AAA (sf) 172.50 B-1 AA (sf) 58.50 B-2 AA (sf)
30.00 C (deferrable) A (sf) 59.25 D (deferrable) BBB (sf) 39.50
E (deferrable) BB (sf) 37.50 Subordinated notes NR 85.00 NR--Not
Primary Credit Analyst: Deborah L Newman, New York (1)
212-438-1000; email@example.com Secondary
Contact: Paul Kalinauskas, New York (1) 212-438-1000;
firstname.lastname@example.org Analytical Manager, U.S.
Structured Credit New Issuance: Winston W Chang, New York (1)