...Criteria Application: The criteria apply to highly structured corporate financings in the UK, known as whole business securitisations (WBS). These are used for long-term, fully amortising financings of operating assets in industries with stable cash flows and low obsolescence risk. Hybrid Corporate/Structured Finance: The WBS criteria combine structured and corporate finance analysis to evaluate risk and determine a rating. Analysis of the industry and underlying business risk profiles are conducted following corporate finance principles. This establishes key drivers for operating cash-flow forecasts. Legal Structure: The WBS framework combines a special bankruptcy regime with covenants, asset-specific security and structural protections to limit the scope of the borrower's business and to protect the interests of secured creditors in the event of deterioration in financial performance. The rating impact of the structural enhancements may, however, be limited. Instrument Ratings: Fitch...
