Payment of the Purchase Price or the Total Consideration by the Purchaser on the Settlement Date will be made based on the outstanding principal balance of the Notes after giving effect to amounts paid to Holders on such date as a result of it also being an Early Amortization
assessing a risk-based capital charge to reflect the risks in securitizations with early amortization
provisions that are backed by revolving retail exposures.
The downgrade reflects significant deterioration in profitability and portfolio credit quality and the heightened risk of breaching early amortization
triggers on off-balance sheet ABS transactions, which could lead to a possible shut-down of the business.
The seller bond is available to facilitate ongoing receivables purchases and to cover seller-related commingling risk, and ranks pari-passu with the senior bond provided that an early amortization
trigger event has not occurred.
Notes issued from the Citibank Omni Master Trust benefit from a standard structural feature, known as early amortization
events, which protects investors from deterioration in collateral, seller insolvency or servicer default by triggering early redemption and/or acceleration.
Investors are protected from a deterioration in asset quality, seller insolvency, or servicer default by early amortization
In addition, for dealer floorplan transactions, cash flow analysis also simulates a manufacturer bankruptcy resulting in an early amortization
, slowing vehicle sales and increased dealer defaults.
Investors are protected from a deterioration in credit quality by early amortization
events, which would trigger an early payout of investor principal.
The replenishment period will terminate upon the earlier of 18 months from the closing date or the breach of various triggers including an event of default, an early amortization
trigger, or a failure to maintain target OC levels.
In Fitch's opinion, the insufficient yield as well as the lower OC levels should represent early amortization
events in the Indenture.
Fitch does not expect the discontinuance of the rebate program to have any negative credit implications on the outstanding series, given the available credit enhancement and early amortization
Additionally, investors are protected from deterioration in asset quality, seller insolvency or servicer default by early amortization