STP-44: Which financial institutions are acceptable to the Companies as issuing banks for the Pre-Bid Letter of Credit?

It is a requirement of Standard Products RFP that the bank issuing the Pre-Bid Letter for a Company meet the ratings requirements of Paragraph 14 of a Company’s Pre-Bid Letter of Credit (Paragraph 14 is pasted below for your convenience).

We, the Issuing Bank, certify that as of the Date of Issuance of this Letter of Credit our senior unsecured debt is rated “A” or better by Standard & Poor’s (“S&P”) if rated by S&P, “A2” or better by Moody’s Investors Service (“Moody’s”) if rated by Moody’s, and, “A” or better by Fitch Ratings (“Fitch”) if rated by Fitch.  We hereby certify that our senior unsecured debt is rated by at least two of S&P, Moody’s, and Fitch.  If affiliated with a foreign bank, we further certify we are a U.S. branch office of such foreign bank and that as of the Date of Issuance of this Letter of Credit, our senior unsecured debt meets the ratings requirement of this paragraph.

The Companies require that the bank issuing a Pre-Bid Letter of Credit for a Company be able to certify to Paragraph 14 by using Paragraph 14 in its entirety or by incorporating only those modifications to Paragraph 14 approved by the applicable Company.