S&P - Public Finance Criteria (2007). - The Global Clearinghouse

Cross Sector Criteriamight not be an acceptable substitute for self-liquidityand the presence of the line may not reducethe issuer’s liquidity on a dollar per dollar basis.Standard & Poor’s will evaluate lines if requested todo so, and strong lines that more closely resemblestandby bond purchase agreements, even if they arenot part of the bond transaction, may be used toreduce an issuer’s self liquidity.Asset-To-Debt Coverage RequirementsAn issuer must ensure, on an ongoing basis, that itsavailable assets (whether they are cash and fixedincome investments or dedicated liquidity facilities)are sufficient, safe, and liquid enough to meet atleast 100% of maturing CP or the full amount of apotential VRDO tender. The 100% requirementprovides a minimum of 1x coverage of debt byavailable assets and assumes assets are available inthe event of a failed remarketing or optional tender.In cases where a combination of an issuer’s ownassets and bank liquidity facilities (provided theyare strong enough to provide support for the program)provide liquidity support, the minimum coveragerequirement remains 1x.When evaluating fixed income investments in aportfolio, Standard & Poor’s uses different coveragelevels of different types of investments to take intoaccount the nature of the specific assets availableand the speed with which the assets can be liquidatedwithout significant market losses. An issuer providingself-liquidity must indicate its willingness tosell assets in a down market and incur a potentialloss if Standard & Poor’s is to be comfortable withtheir ability to provide self-liquidity.When an issuer chooses to use its own assets, theamount of assets necessary to cover maturing CP or apotential VRDO tender depends upon the asset’scredit quality, volatility, and weighted average maturity.Generally, the lower the credit quality of the fixedincome security, the longer the weighted averageExhibit BPortfolio Surveillance InformationRecipient:Telephone #:Monthly Portfolio Surveillance InformationDate of portfolioPar/Face value (millions) of fixed income portionMonthly total returnEffective durationSender/Contact:Liquidity provider:Name of portfoliosMarket value (millions) of fixed income portionTotal value (millions) of equity holdings and other assetsWeighted average maturityNet asset value (per share if available)Credit Quality—Standard & Poor’s ratings (%) (Please indicate if other NRSRO ratings are used)AAABBAACCCAN.RBBBPortfolio Breakdown (%) of the Fixed Income Holdings Sector type with market value and percentages (suggested categories.)U.S. TreasuryCorporate bondsAgency discount notesAsset-backed securitiesAgency mortgage-backed securitiesCollateralized Mortgage ObligationsRepurchase agreementsMunicipal notesCommercial paperCash/Other MMFsCertificates of DepositOtherCorporate notes Total should equal to 100%Leverage (Please indicate the type of leverage used and the percentage)Maturity breakdown (%)5-10 Years0-1 Years 10-15 Years1-3 Years 15-25 Years3-5 Years 25 & OverTotal outstanding debt covered by self liquidity (millions):Commercial paperVRDNsOtherMaximum daily and weekly modesAsset to debt coverage22 Standard & Poor’s Public Finance Criteria 2007