The long-term 'AA'/Outlook Stable rating assigned to series G-30, G-32, G-33 and G-34 Floater and Residual Certificates and Custodial Receipts are based on the rating that Fitch has assigned to the Royal Bank of Canada, acting through a New York branch, (RBC; AA/F1+/Stable) the provider of the irrevocable direct-pay letter of credit (LOC), which secures the trust receipts deposited in the stated trusts that have a stated expiration date of July 18, 2019, unless such date is extended or earlier terminated, which secures the custodial receipts deposited in the trust.
The long-term ratings assigned to the series G-30, G-32, G-33 and G-34 floater and residual certificates are exclusively based on the rating assigned to the bank providing the LOC and will reflect all changes to that rating.
The short-term ratings assigned to the G-30, G-31, G-32, G-33 and G-34 Floater Certificates will be adjusted upward or downward in conjunction with the short-term rating of the bank, and, in some cases, the long-term ratings of the underlying assets deposited in the trusts.
(2) As shown in Figure 2, the corrosion rates indicated for Hastelloy G-30 in boiling 12 M [HNO.sub.3] increased markedly with each incremental addition of 20 ppm Cr(VI).
The effectiveness of [H.sub.2][O.sub.2] additions to prevent accelerated corrosion for an extended period of time (per ASTM standard method G-31) was demonstrated in a series of tests with and without [H.sub.2][O.sub.2] additions to boiling 12 M [HNO.sub.3] containing Hastelloy G-30 immersion coupons.
As shown in Figure 4, the corrosion rate of Hastelloy G-30 exposed to boiling 12 M [HNO.sub.3] did not increase when a small amount of hydrogen peroxide was added hourly to the test solution.
In subsequent parallel cyclic immersion tests of Hastelloy G-30 in boiling 12 M [HNO.sub.3] with and without periodic additions of hydrogen peroxide, each test coupon was withdrawn and examined microscopically between the 70-hour-long immersion cycles.
Furthermore, under the G-30 proposal, the interests of the select group of member institutions might not prove to be identical with the general interests of the financial industry.
As concepts, the precommitment approach and the G-30 proposal for self-regulation supply important and thought-provoking ideas.
Although self-regulation aimed at greater market discipline would be welcome, the precommitment approach and G-30 proposal would probably not be able to achieve it on a lasting basis--especially if a bank or a banking system were in a difficult situation.
Because the Capital Accord sets capital requirements more conservatively than do the precommitment approach and the G-30 proposal, there remains a buffer for cushioning the risks that are difficult to measure--operational and legal risks, for instance.
