Sonic Capital LLC-Related Insured Custodial Receipts Rated #AA#

Stocks and Financial Services Press Releases Friday January 12, 2018 08:53
NEW YORK--12 Jan--S&P Global Ratings

NEW YORK (S&P Global Ratings) Jan. 11, 2018--S&P Global Ratings today assigned its 'AA' rating to the $12 million insured custodial receipts related to the class A-2 fixed-rate senior secured notes from Sonic Capital LLC's series 2016-1. The rating reflects our opinion of the likelihood that the custodian, The Bank of New York Mellon will have sufficient assets to pay timely interest and principal when due on the receipts. These assets include Sonic Capital LLC's series 2016-1 class A-2 notes, the underlying security ('BBB (sf)'), and an insurance policy provided by Assured Guaranty Corp. ('AA').

The rating is based on the higher of our rating on Assured Guaranty Corp., as the insurance provider, and the underlying security. Based on our analysis, we believe the assets support the full and timely payment of all obligations on the receipts, except in certain circumstances (see below).

On the closing date, the custodian acquired the underlying securities and issued custodial receipts maturing in 2046. The underlying security may be subject to redemption or other prepayment; however, the insurance policy will only cover payments when they would otherwise be due. The policy provides coverage in the event payments from the underlying security are recaptured due to the underlying issuer's bankruptcy.

If prepayments are recaptured, the policy will pay this preference coverage when regularly scheduled payments would have otherwise been due. In our view, the certificateholder could receive less than the par and accrued interest amounts due on the certificates if the insurer fails to pay on a claim from the custodian or becomes involved in insolvency proceedings itself. Therefore, in view of the custodial receipts' structure, changes to our rating on the certificates could result from, among other things, changes to our ratings on the insurer or the underlying security.

(For more information, see "Assured Guaranty Ltd. And Operating Companies," published July 24, 2017.) We have reviewed the relevant legal matters and opinions outlined in our criteria.

Latest Press Release

Visa and AEON to launch the new Visa Olympic themed card issued by AEON

Mr.Suripong Tantiyanon (2 nd from right), Country Manager, Visa Thailand, the official sponsor of Olympic Games Tokyo 2020 and Mr. Kenji Fujita (2 nd from left), Managing Director, AEON Thana Sinsap (Thailand) Public Company Limited jointly launched Visa...

Wirecard and UnionPay, the World#s Largest Card Scheme, Sign MoU to Form Expanded Global Strategic Partnership

- UnionPay leads the global card scheme market, having issued 57.6% of the world's payment cards in circulation - Partnership aims to support Wirecard's growth in China - Scope includes expanding global acceptance of UnionPay and developing joint...

Photo Release: Bangkok Bank and Nirvana launch Live Beyond Limits campaign offering a special flat interest rate for one year with a low monthly repayment of 1,000 baht per million baht borrowed

Bangkok Bank Executive Vice President Kelvin Yoong Tao Foo and Nirvana Daii Executive Vice President of Low Rise Residence Group Nantachart Kliebphipat launched the "Live Beyond Limits" promotional campaign offering a special flat interest rate with a...

World Gold Council Launches Responsible Gold Mining Principles

The World Gold Council, the market development organisation for the gold industry, has today announced the launch of its Responsible Gold Mining Principles. The Principles are a framework that set out clear expectations for consumers, investors and the...

Photo Release: EXIM Thailand Visits Frozen Vegetables and Condiments Exporter in Lamphun

Mr. Pisit Serewiwattana (third right), President of Export-Import Bank of Thailand (EXIM Thailand), with EXIM Thailand's executives recently visited Lanna Products Co., Ltd., manufacturer and exporter of frozen vegetables and condiments including instant...

Related Topics