DBRS Assigns Ratings to Versailles Assets LLC and Versailles Commercial Paper LLC –Commercial Paper

DBRS has today assigned a rating of R-1 (middle) to the 4(2) Commercial Paper notes (CP) issued by Versailles Assets LLC (“Versailles Assets”) and Versailles Commercial Paper LLC (“Versailles CP”), sponsored by Natixis Financial Products Inc (“Natixis’).

Versailles Assets and Versailles CP are special-purpose, bankruptcy-remote, commercial paper conduits that are organized in Delaware and managed by Global Securitization Services LLC. Natixis is the Program Administrator.

Versailles Assets and Versailles CP work in concert to issue ABCP to the market backed by various assets. Versailles Assets finances the acquisition of assets by issuing CP to Versailles CP and has the direct benefit of Liquidity Loan Agreements (LLA’s), which are sized at 102% of each transaction. Versailles CP finances its purchases of CP from Versailles Assets by issuing CP to the market and benefits from Program Wide Credit Enhancement (PWCE) sized at the greater of $100 million or 10% of all non-highly (AA or higher) public explicitly rated transactions. The two conduits work in concert to ensure CP investors are paid in whole and on time.

The Versailles conduits, taken together, benefit from two levels of credit enhancement: transaction-specific and PWCE. The transaction-specific credit enhancement is specifically earmarked for each transaction, whereas the PWCE is fungible across all deals.

The applicable public methodology is the Asset-Backed Commercial Paper Criteria Report: U.S. ABCP Conduits, which can be found on our website under Methodology.

Note:
All figures are in U.S. dollars unless otherwise noted.