...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 the possibility of appointing an administrative receiver for the benefit of the secured creditors with covenants, asset-specific security and structural protections. Together, these features limit the scope of the borrower's business and protect the interests of secured creditors in the event of deteriorating financial performance. The rating impact...
