Credit Enhancement Factor definition
Credit Enhancement Factor means a percentage based on the levels of aggregate reserves utilized in the most recently completed offering of rated, intermediate term asset-backed securities backed by receivables originated primarily by TWRI (the "Most Recent Offering"), as reasonably determined by the Agent. The new Credit Enhancement Factor shall go into effect on the Settlement Date immediately following the closing date of the Most Recent Offering. The Credit Enhancement Factor shall be determined using the following formula: BBB Enhancement Level + 1% + (A Enhancement Level - BBB Enhancement Level) 2 where: A Enhancement Level = the percentage of aggregate reserves required to achieve a "A" credit rating (or its equivalent) from each nationally recognized rating agency rating the Most Recent Offering. BBB Enhancement Level = the percentage of aggregate reserves required to achieve a "BBB" credit rating (or its equivalent) from each nationally recognized rating agency rating the Most Recent Offering.