(Source: Business Wire)
Fitch Ratings has published a credit report on PNC Bank, N.A.'s asset backed commercial paper (CP) program, Market Street Funding LLC (Market Street). PNC Bank, N.A. (PNC) is rated 'A+/F1' by Fitch. Fitch assigned an 'F1' rating to the CP last week. The rating was based on the quality of the assets purchased by Market Street, the credit and liquidity support provided by banks or financial institutions rated at least 'F1', the managerial capabilities of PNC, and the program's structure. The credit report is available on Fitch's website at www.fitchratings.com.
Market Street, sponsored by PNC, is a special purpose, bankruptcy-remote Delaware limited liability company. Market Street's primary purpose is to issue 4(2) U.S. dollar-denominated CP in an amount not to exceed $9.0 billion. The proceeds of such issuance are used to purchase, and make loans secured by, interests in receivables, securities and other financial assets. The CP issued by Market Street may have maturities of up to 270 days.
To facilitate the timely repayment of maturing CP, Market Street maintains transaction-specific liquidity support. The program also benefits from program-wide credit enhancement. Liquidity agreements are sized at 102% of the maximum purchase limit of each facility. Program-wide credit enhancement, in the form of a cash collateral account provided by PNC, is sized at 10% of the aggregate authorized amounts of all transactions excluding certain highly-rated facilities and assets.
PNC serves as Market Street's administrator, and is responsible for the day-to-day operations of the program including: coordinating the issuance, sale and timely repayment of CP; maintaining all books, records and accounts; monitoring available liquidity support and daily cash flow projections; ensuring that each liquidity agreement conforms with the program requirements; drawing upon liquidity and credit agreements to repay maturing CP if necessary; and investing any excess funds in cash equivalents. PNC also serves as the program's issuing and paying agent.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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