Rating Assigned to Ivory Funding Corp.'s Commercial Paper Notes
NEW YORK (Standard & Poor's CreditWire) August 30, 2000--Standard
& Poor's assigned its 'A-1' rating to the 4(2)
commercial paper notes issued by Ivory Funding Corp.
The rating is based on the following:
-- The special-purpose, bankruptcy-remote structure of Ivory;
-- The program requirement that there is sufficient aggregate available
liquidity commitments to cover the outstanding face amount of the
commercial paper notes;
-- The program requirement that the financial institutions providing such
liquidity commitments be rated at least 'A-1';
-- The program requirement that Ivory benefit from credit enhancement
with respect to the securities portfolio sufficient to maintain the
'A-1' rating;
-- The program requirement that the financial institutions providing such
credit enhancement be rated at least 'A-1'; and
-- The program requirement that Ivory benefit from interest rate and
currency hedging arrangements with counterparties rated at least
'A-1', where applicable.
Ivory is a newly formed securities arbitrage conduit to be
administered by Bank One N.A. Ivory will use the proceeds from the
issuance of commercial paper to make intercompany loans to various
purchasing companies, which are required to be bankruptcy remote. These
purchasing companies will use the loan proceeds to purchase rated
securities in the open market under the direction of a portfolio manager.
Ivory is a Delaware corporation wholly owned by Broad Street Contract
Services Inc., which is administered by Lord Securities Corp. Ivory will
issue commercial paper notes with maturities not to exceed 270 days when
issued in the U.S. market and not to exceed 183 days when issued in the
European market, Standard & Poor's said. -- CreditWire
| Credit Analyst: | M. Scott Sehnert, New York (1) 212-438-2603 |
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