(The following was released by the rating agency)
-- The ORIX APL-J Trust I transaction is ultimately secured
by a pool of apartment loans originated by ORIX Corp.
-- Although the vacancy rate of the underlying apartment
pool has remained high, no default or delinquency has occurred
since the closing date. In addition, credit enhancement levels
have increased, reflecting progress in principal redemption for
the rated certificates.
-- We have affirmed our ratings on classes A to D, and class
X issued under the transaction.
TOKYO (Standard & Poor's) Nov. 27, 2012--Standard & Poor's
Ratings Services today said that it has affirmed its ratings on
the beneficial interests issued under the ORIX APL-J Trust I
transaction (see list below).
In analyzing the credit quality of the transaction, we
examined the performance data contained in the reports that we
receive each month from the servicer and trustee.
Following our review, we affirmed our ratings on the
transaction because (1) no default or delinquency has occurred
since the closing date, although the vacancy rate of the
underlying apartment pool has remained high; and (2) the levels
of credit enhancement available to the beneficial interests have
increased, which reflects progress in principal redemption for
the rated beneficial interests and offsets the weak performance
of the underlying apartments.
The beneficial interests are ultimately secured by a pool of
apartment loans originated by ORIX Corp. and entrusted with
Mitsubishi UFJ Trust and Banking Corp. The ratings reflect our
opinion on the likelihood of the full and timely payment of
floating interest and the ultimate repayment of principal by the
legal final maturity date of 2037 for the class A to D
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 Rule applies to in-scope
securities initially rated (including preliminary ratings) on or
after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available here.
RELATED CRITERIA AND RESEARCH "Counterparty Risk Framework
Methodology And Assumptions," May 31, 2012
"Japan RMBS: Post-Disaster Outlook Is Stable For Most RMBS
Deals In Fiscal 2012," April 9, 2012
"Japanese Structured Finance Scenario And Sensitivity
Analysis: The Effects Of Major Macroeconomic Factors," April 6,
"Principles Of Credit Ratings," Feb. 16, 2011
"Global Methodology For Rating Interest-Only Securities,"
published April 15, 2010
"Rating Methodology For Apartment Loan Securitizations in
Japan," published July 11, 2004
ORIX APL-J Trust I
JPY7.3 billion class A-D and X beneficial interests
Class Rating Initial amount
A AAA (sf) JPY6.4 bil.
B AA (sf) JPY0.3 bil.
C A (sf) JPY0.3 bil.
D BBB (sf) JPY0.3 bil.
X AAA (sf) N/A*
*Class X is interest only.