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Hong Kong, January 03, 2011 -- Moody's Investors Service has placed the Aa3 (sf) rating of the Senior Interest issued by Courts Receivables Acquisition Trust (the "issuer") on review for possible downgrade. The collateral of the Senior Interest consists of a portfolio of highly-diversified consumer installment loan receivables granted by Courts (Singapore) Pte Ltd. The originator transfers the receivables from time to time to Assetrust Pte. Ltd., the trustee of the issuer. Issuer: Courts Receivables Acquisition Trust Senior Interest, Aa3 (sf) Place Under Review for Possible Downgrade, previously on March 22, 2010 Definitive Rating Assigned Aa3 (sf) The review was prompted by (a) the transfer of the extended warranty service for the deal from American Home Assurance Company, Singapore branch (AHA, rated Aa3) to Chartis Singapore Pte Ltd. (Chartis Singapore, unrated by Moody's) on January 1, 2011, and (b) the proposal to fund a maximum of 20% of such extended warranty insurance premium when determining the amount of Senior Interest that can be issued. Under the extended warranty insurance policy, obligors need to pay monthly insurance premiums. These premiums are part of the securitized receivables. When determining the amount of Senior Interest that can be funded on each monthly settlement date, the transaction documents stipulate a maximum exposure of 20% on the extended warranty premium if the rating of the extended warranty provider is Aa3 or above, and 3% if the rating is below Aa3. When AHA was the extended warranty provider prior to the transfer on January 1, 2011, the total outstanding premiums amounted to 14% of the eligible receivables. Currently, with the extended warranty provider being Chartis Singapore, and the maximum exposure is still at 20%, the amount of Senior Interest will not be changed. However, when and if Chartis Singapore fails to provide the extended warranty service to the obligors, the transaction will be exposed to the risk that the obligors may stop paying the premiums. During the review period, we will evaluate the issuer's restructuring proposal and determine the potential risk posed to the Senior Interest from the extended warranty provider.