Because the Securitization Entity's Credit Rating Is Based on the Quality

question 26

True/False

Because the securitization entity's credit rating is based on the quality of the transferred receivables,it will be the same as the rating of the transferor's general debt.

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Definitions:

Break-even Analysis

A financial calculation to determine the point at which a business, product, or project will become profitable, by equating total revenues with total costs.

Single Product

Referring to businesses or production processes that focus on the manufacture or sale of one specific product.

Redesign

The process of changing or modifying the design of a product, service, or system to improve functionality or aesthetics.