Fitch Ratings has assigned an ‘F1’ rating to the asset-backed commercial paper (CP) issued by Three Pillars Funding LLC (Three Pillars). The rating is based on the quality of the assets purchased by Three Pillars, the credit and liquidity support provided by banks or financial institutions rated at least ‘F1’, the managerial capabilities of SunTrust Robinson Humphrey, Inc. (STRH), an affiliate of SunTrust Bank, Inc. (SunTrust) (Issuer Default Rating ‘A-/F1’), and the program’s structure.
Three Pillars, sponsored by SunTrust, is a special purpose, bankruptcy-remote Delaware limited liability company. Three Pillars’ primary purpose is to issue 4(2) U.S. dollar-denominated CP in an amount not to exceed USD12 billion. The proceeds of such issuance are used to purchase, and make loans secured by, interests in receivables, securities and other financial assets. The CP issued by Three Pillars may have maturities of up to 270 days.
To facilitate the timely repayment of maturing CP, Three Pillars maintains transaction-specific liquidity support. The program also benefits from program-wide credit enhancement. Liquidity agreements are sized at 102% of the maximum commitment amount of each facility. Program-wide credit enhancement, in the form of a letter of credit provided by SunTrust, is sized at 10% of the aggregate commitment amounts of all transactions with a minimum dollar amount of USD300 million.
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