R&I - Rating and Investment Information Inc.

04/21/2017 | Press release | Distributed by Public on 04/21/2017 00:10

Sapporo Express Securitization: R&I Asgns Formal Rating

Apr 21, 2017

Assignment of Ratings (Formal)

Next Funding Limited Liability Company

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesA ABL: a-1 Sapporo Express Co., Ltd. ARs ABL No.123 SeriesB ABL-1: a-3 Sapporo Express Co., Ltd. ARs ABL No.123 SeriesB ABL-2: a-3

Rating and Investment Information, Inc. (R&I) has announced the following ratings.

1.OUTLINE OF THE STRUCTURE

This issue is a securitization of accounts receivable originated by Sapporo Express Co., Ltd., which is arranged by North Pacific Bank, Ltd. The ratings are for the ABLs that are backed by the accounts receivable.

2.CREDIT RATING

INSTRUMENT NAME

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesA ABL

RATING ACTION

Assignment of a rating

R&I RATING

Short-term Rating a-1

NOTE

The rating is an assessment of the probability that the principal of the ABL will be paid in full by the repayment date and the interest will be paid according to the contract.

INSTRUMENT NAME

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesB ABL-1

RATING ACTION

Assignment of a rating

R&I RATING

Short-term Rating a-3

NOTE

The rating is an assessment of the probability that the principal of the ABL will be paid in full by the repayment date and the interest will be paid according to the contract.

INSTRUMENT NAME

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesB ABL-2

RATING ACTION

Assignment of a rating

R&I RATING

Short-term Rating a-3

NOTE

The rating is an assessment of the probability that the principal of the ABL will be paid in full by the repayment date and the interest will be paid according to the contract.

3.ABOUT INSTRUMENT

ISSUER

Next Funding Limited Liability Company

UNDERLYING ASSET

Sales Receivables

INSTRUMENT NAME

AMOUNT (CURRENCY)

Sub. Ratio (*1)

Date of Issue

Sched. Maturity Legal Maturity

Redemp- tion

(*2)

Coupon Type/Rate

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesA ABL

Yen34,560,372

(JPY)

90.00%

Apr 24, 2017

Oct 02, 2017

HB

Fixed

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesB ABL-1

Yen125,798,899

(JPY)

18.27%

Apr 24, 2017

Oct 02, 2017

HB

Fixed

Sapporo Express Co., Ltd. ARs ABL No.123 SeriesB ABL-2

Yen122,102,651

(JPY)

18.27%

Apr 24, 2017

Oct 02, 2017

HB

Fixed

(*1) Sub. Ratio: Subordination Ratio

(*2) Redemption Method: HB: Hard-Bullet

4.RATING METHODOLOGY

The primary rating methodologies applied to these ratings are:

Announced in

TITLE

November 2016

Chapter 1: General

November 2016

Chapter 2: Particulars: Risks regarding structure

November 2016

Chapter 3: Particulars: Risks regarding underlying assets Subchapter 8: Accounts receivable

November 2016

Chapter 4: Particulars: Cash flow risk

Subchapter 1: Analysis method for monetary receivables, etc. (Large pool approach)

Subchapter 7: Analysis method based on credit ratings of underlying assets and parties involved in the structure

The above rating methodologies are available at R&I's website:

http://www.r-i.co.jp/eng/sf/about/methodology/index.html http://www.r-i.co.jp/jpn/sf/about/methodology/index.html