vehicle, Westways Funding IV, Ltd., has been rated `F1' by Fitch IBCA.

And the agency gave a `AA' rating to $118.27 million secured class A-1 floating rate notes, $78.848 million secured class A-2 floating rate notes, and $110.88 million secured class A-3 floating rate notes.

Fitch IBCA said yesterday the `F1' rating reflects the high quality and liquidity of Westways' assets, the credit enhancement provided by overcollateralization, and a liquidity facility aggregating $262.5 million in liquidity coverage.

The `AA' ratings reflect the structure of the notes, the high quality of the issuer's assets and the master swap agreement with The Bank of New York.

In addition, the ratings reflect the likelihood that investors will receive quarterly interest payments through the earlier of either August 2003 or an early redemption, as well as the principal balance of the class A-1 notes, the class A-2 notes, and the class A-3 notes by the scheduled maturity date of August 2003, the class A-2 maturity date of August 2008, and the class A-3 maturity date of August 2028, respectively.

The `AA' ratings are based on, and will change with, the rating of the swap counterparty. The ratings do not address the likelihood of a termination of the swap agreement.

Fitch IBCA's rating process included an in-depth analysis of the credit risk, liquidity risk, interest rate risk, and operational risk of the investment portfolio.

The proceeds of the commercial paper and notes will be used to purchase a diversified investment portfolio, consisting primarily of US dollar denominated, adjustable or floating rate, short duration, government, mortgage-related or asset-backed securities.

At least 75 percent of the portfolio will be comprised of investments issued or guaranteed by the US government and its agencies and private sector collateralized mortgage obligations backed by such investments.

The remainder of the portfolio will be invested in `AAA', `AA', or `A' investments, with `A' investments capped at 15 percent. In addition, the portfolio will have a maximum duration of 1.5 years.

The investment manager, TCW Funds Management Inc., will purchase and sell all investments for the portfolio on behalf of the issuer, Westways Funding IV, Ltd., the special purpose company incorporated under the laws of Bermuda. TCW will manage the portfolio in accordance with specific investment policies, restrictions and guidelines approved by Fitch IBCA. To ensure accurate value of the portfolio, the issuer will perform daily valuations.

Upon liquidation of the portfolio, either in August 2003 or upon a trigger event, if there are insufficient proceeds to fully repay the class A-2 and A-3 notes, the trustee will purchase zero coupon US Treasury strips with an aggregate face amount equal to the aggregate principal amount of the subordinate notes to be due no later than August 2008 and August 2028, respectively. If at such a liquidation there are insufficient proceeds to fully repay the class A-1 notes and to defease the class A-2 and A-3 notes as described above, The Bank of New York is required to pay such class A-1, A-2 and A-3 shortfall amounts.