Moody’s rates JGWPT Hold­ings se­cu­ri­ti­sa­tion of struc­tured set­tle­ments

The Pak Banker - - Front Page -


Global rat­ing agency Moody’s has as­signed pro­vi­sional rat­ings to Notes is­sued by JGWPT XXVII LLC (the Is­suer), an in­di­rect wholly owned sub­sidiary of J.G. Went­worth Orig­i­na­tions LLC (the Spon­sor), col­lat­er­al­ized by a pool of struc­tured set­tle­ment pay­ments and as­sign­a­ble an­nu­ity streams.

Global rat­ing agency Moody’s rat­ings on the Notes re­flect its as­sess­ment of the qual­ity of the court-or­dered struc­tured set­tle­ment pay­ment streams and an­nu­ity re­ceiv­ables, the cred­it­wor­thi­ness of the oblig­ors, the ser­vic­ing ar­range­ment, and the struc­tural and le­gal fea­tures. This se­cu­ri­ti­za­tion trans­ac­tion is very sim­i­lar to the Spon­sor’s pre­vi­ous transactions, ex­cept that the Pre­fund­ing Ac­count is larger than in the past and the Class A sub­or­di­na­tion is slightly smaller.

The main driver of credit risk in this trans­ac­tion is the obligor base. As in the Spon­sor’s pre­vi­ous se­cu­ri­ti­za­tions, the pool of oblig- ors are pri­mar­ily highly rated life in­sur­ance com­pa­nies, of which more than 90% (based on the present value of the se­cu­ri­tized re­ceiv­ables) have an in­sur­ance fi­nan­cial strength rat­ing of A3 or higher.

The Is­suer’s as­sets in­clude court-or­dered struc­tured set­tle­ment pay­ments (around 95.6% of the present value of the re­ceiv­ables), an­nu­ity re­ceiv­ables (around 4.4% of the present value of the re­ceiv­ables), a Re­serve Ac­count with around $1,233,824, a Cap­i­tal­ized In­ter­est Ac­count with ap­prox­i­mately $784,548, and a Pre­fund­ing Ac­count with ap­prox­i­mately $76,702,718. The Pre­fund­ing Ac­count con­sti­tutes ap­prox­i­mately 40% of the bal­ance of the Notes com­pared with ap­prox­i­mately 35% in JGWPT XXI LLC, Se­ries 2012-2. Amounts on de­posit in the Pre­fund­ing Ac­count will be used to ac­quire ad­di­tional re­ceiv­ables within a Pre­fund­ing Pe­riod of ninety days af­ter clos­ing. The ad­di­tion of new re­ceiv­ables will be sub­ject to el­i­gi­bil­ity cri­te­ria and to a Rat­ing Agency Con­di­tion from Moody’s stat­ing that it will not down­grade.

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