S&P Assigns 'AA' to Clare IV Funding's Japanese ABS

Business Wire,  Sept 19, 2003  

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Business Editors

TOKYO--(BUSINESS WIRE)--Sept. 19, 2003

Standard & Poor's--Standard & Poor's Ratings Services said today that it had assigned its 'AA' rating to Clare IV Funding Corp.'s (Clare IV) JPY35 billion-equivalent euro/yen-denominated notes due September 2009 (see list below).

The rating addresses the full and timely payment of interest and the ultimate full repayment of principal by the legal final maturity of September 2009.

This transaction is the securitization of approximately JPY50.97 billion in seller beneficial interests ('former seller beneficial interests') previously issued by Clare Special Purpose Co. (Clare 1) and Clare Series II Special Purpose Co. (Clare 2), both of which are transactions involving the securitization of card loan receivables originated by Orient Corp. (Orico). The Clare 1 notes were issued in December 2001, and the Clare 2 notes were issued in March 2002. Orico has already securitized the subordinated portions issued pursuant to previous transactions backed by various types of assets, including auto loan receivables and shopping credit receivables. This transaction is Orico's first securitization of a seller beneficial interest.

The rating reflects the following:

-- Ample credit support provided by a subordinated beneficial

interest equivalent to 31.3% of the total former seller

beneficial interests to be entrusted at closing;

-- A sufficient cash reserve to be funded at closing; and

-- The status of Clare Volume Four SPC and Clare IV as

bankruptcy-remote, special-purpose entities.

This transaction will not affect the 'AAA' ratings assigned by Standard & Poor's to the notes issued by Clare 1 and Clare 2.

Clare IV Funding Corp.
Eur100,000,000 floating rate Series A notes due 2009       AA
JPY21,900,000,000 floating rate Series A notes due 2009    AA

Copyright 2003, Standard & Poor's Ratings Services

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