Deutsche Bank Securities Inc. Receipts (Series 1000) DBE-1389 Rated #AAA/A-1#, #AAA#; Ratings Placed On Watch Negative

Stocks and Financial Services Press Releases Friday April 10, 2015 09:00
NEW YORK--10 Apr--Standard & Poor's

NEW YORK (Standard & Poor's) April 9, 2015--Standard & Poor's Ratings Services assigned its 'AAA/A-1', 'AAA', and 'AAA' ratings to Deutsche Bank Securities Inc. Receipts (Series 1000)'s series DBE-1389 short puttable exempt adjustable receipts (SPEARs), long inverse floating exempt receipts (LIFERs), and custodial receipts, respectively, relating to Golden State Tobacco Securitization Corp.'s (California) enhanced tobacco settlement asset-backed bonds, series 2015A 5.0% term bonds. The ratings are also placed on CreditWatch with negative implications due to a potential two-notch lowering of the long-term rating on Deutsche Bank AG, the guarantor and enhancement provider for the receipts (for additional information, see the article titled, "S&P Takes Various Rating Actions on Certain U.K., German, Austrian, And Swiss Banks Following Government Support Review", published Feb. 3, 2015, on RatingsDirect).

The long-term component of the ratings on the SPEARs and LIFERs reflects the rating on the custodial receipts, the rating of which is based jointly (assuming low correlation) on the ratings on the underlying bonds a guarantee from Deutsche Bank AG. The short-term component of the rating on the SPEARs reflects a liquidity facility, in the form of a standby purchase agreement (SPA), from Deutsche Bank AG.

The initial SPA shall provide for payment of the tender price of the variable certificates (SPEARs), which includes the stated amount of, and interest on, unremarketed variable certificates bearing interest at the weekly rate. The SPA shall terminate on May 31, 2015, the stated expiration date. At such time, if the SPA has not been extended, or an alternate liquidity facility has not been delivered, we shall remove the short-term component of the rating on the SPEARs. Additionally, should a tender-option termination event (TOTE) occur, the SPA would terminate without the SPA provider providing notice to SPEARs holders.

The TOTEs for the variable certificates account for the joint-support rating on the underlying trust asset. The following events constitute TOTEs: An act of bankruptcy by the underlying obligor and the principal credit source (Deutsche Bank),Failure to pay principal and interest on the custodial receipts by both the underlying obligor and the principal credit source,The rating on the variable certificates is lowered below 'BBB-', andAn event of taxability with respect to the underlying bonds.Standard & Poor's rating does not reflect our opinion of the likelihood that certificate holders will receive full and timely payment of premiums or hypothetical gain share payments, nor does it reflect our opinion of the likelihood that such payments will be subject to the entity funding such payments potentially filing for bankruptcy.

STANDARD & POOR's 17g-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. There is no Standard & Poor's 17g-7 Disclosure Report included in this credit rating report because, in our view, there are no representations, warranties and enforcement mechanisms available to investors.


Latest Press Release

In Ukraine, Labor, Taxation, and Social Policies Must Be Upgraded to Address Rising Inequality, Says World Bank

WASHINGTON, September 25, 2018 – Social inequality across the regions of Ukraine is low, but the social gap in urban and rural areas remains wide, according to a new World Bank report. Toward a New Social Contract calls for a fundamental rethinking...

Focus on China-CEE Cooperation During Prague Leg of CEIBS Europe Forum

The historic Prague Castle was the venue for a frank and fruitful discussion on how China and the countries of Central and Eastern Europe can work together to drive mutual economic growth. Attended by about 200 participants, the event saw keynote...

African Leaders, the World Bank Group, and partners catalyze action to ensure that everyone in Africa has a digital identity by 2030

NEW YORK, September 25th, 2018 - African leaders, the World Bank Group, the United Nations, and other development partners met today on the sidelines of the UN General Assembly for the African Leaders Roundtable on Identification for Development to...

Photo Release: KBank joins hands with partners to create K PARK, a new form of lifestyle space for suburban communities

KBank unveils the first K PARK on Hathairat 33 Road by teaming up with three business giants, namely, PTT (PTT gas station and Cafe Amazon), SCG Express and Amarin Printing and Publishing to open a new lifestyle space which offers delightful experiences...

CIMB Group Chairman to Step Down by 31 December 2018

CIMB Group ("CIMB" or "the Group") today announced that its Chairman, Dato' Sri Nazir Razak, will step down from his position as Group Chairman, and all other positions within the CIMB group of companies by 31 December 2018. The CIMB Board of Directors...

Related Topics