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TEXT-S&P Affirms Ratings On ORIX APL-J Trust I
November 27, 2012 / 5:51 AM / 5 years ago

TEXT-S&P Affirms Ratings On ORIX APL-J Trust I

(The following was released by the rating agency)

OVERVIEW

-- 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 beneficial interests.

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, 2012

“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

RATINGS AFFIRMED

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.

Our Standards:The Thomson Reuters Trust Principles.
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