S&P: La Fayette Asset Securitization LLC ABCP Note Issuances Assigned 'A-1 (sf)' Short-Term Ratings
The 'A-1(sf)' short-term ratings reflect our view of: The program's legal structure, including La Fayette's intended bankruptcy-remote status; The support agreements, which could be in the form of a liquidity or letter of credit agreement, between La Fayette and Credit Agricole Corporate and Investment Bank (CA-CIB; 'A/A-1'), the terms of which require CA-CIB to pay La Fayette an amount equal to the principal and interest accrued on the outstanding notes on or before their respective payment dates; Note issuance tests that restrict the notes' face amount to be no greater than amounts that can be fully supported by the support agreements; andLa Fayette and Credit Agricole Corporate and Investment Bank New York Branch's ability to carry out their duties as program administrative agent. PROGRAM DESCRIPTION
La Fayette is a limited liability, special-purpose entity incorporated under New York law to issue U. S. dollar-denominated standard, callable, puttable, and callable/puttable ABCP notes. The notes can be issued at a discount or bear interest at a fixed or floating rate, with maturities of up to 395 days.
The ABCP note proceeds will be used to make loans to borrowers or purchase assets from sellers.
In our review of the program documents, we considered, among other things, the program's legal and structural characteristics and terms that require that the interest and principal that will become due on the notes to be fully supported by the support agreements.
Because the notes are intended to be fully supported based on the support agreements with CA-CIB, we linked the 'A-1 (sf)' ratings on the notes to the rating on CA-CIB. Therefore, changes to our rating on CA-CIB, among other things, can result in changes to our ratings on the notes.
La Fayette's sole member is La Fayette Securitization Member Inc., according to its formation documents. Credit Agricole Corporate and Investment Bank New York Branch serves as the administrative agent for the program.
CALLABLE NOTES The callable notes allow La Fayette to repay them on their call date (a specified date before the scheduled maturity date). The notes can be called in whole or in part once a call notice is issued but no later than the date specified in the related pricing supplement. La Fayette must pay principal and interest or discount, as applicable, accrued up to, but excluding, the call date. If La Fayette does not elect to exercise its call option, it must fully repay the notes on their scheduled maturity date.
PUTTABLE NOTES The puttable notes give ABCP noteholders the option to require La Fayette to redeem and repay the ABCP notes on their put date (a specified date before the scheduled maturity date). The notes can be put in whole or in part on any date within the applicable put period upon put notice according to the terms of the related pricing supplement. La Fayette must pay principal and interest or discount, as applicable, accrued up to, but excluding, the put date. If the noteholders do not elect to exercise the put option, La Fayette must fully repay the notes on their scheduled maturity date unless it has exercised its call option.
CALLABLE/PUTTABLE NOTES Each redeemable note that has a call option and a put option (callable/puttable note) gives the program and noteholders the same rights as described above for the callable and puttable notes, respectively. In addition, the pricing supplement specifies the relative priority of any such call notice and put notice.
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