Leasing News

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section text version edition, which has been corrected. There was a combination that was convoluted and it never appeared on the website or up-dated version,

I was recently let go by Old Kent Leasing in Chicago after Old Kent Financial Corporation was acquired by Fifth Third Bank. The leasing division was dissolved and all of us were out of a job.

I can tell you that nearly all of the employees including myself found their new positions by Networking. I did not find my position through a recruiting firm, Internet, or local classifieds.

Call your contacts at other leasing companies, brokers and even vendors. I am actually working for a vendor now managing all of the leasing and working with their sales staff.

While I am no longer a lessor, I am still in touch with all the lessors because I now need them for funding. You would be surprised at just h many people you know in the industry when the word gets out that your business has closed.

Our country is going though a very tough time economically and emotionally in light of the recent tragedy. Realizing that the last thing people need now is to be unemployed on top of all this, don't let it make you feel you need to drop out of society.

There are jobs for leasing professionals out there, they just may not be with a leasing company.

up-date

I have since moved on to another company as of March 2002. Again, I acquired this position through networking. I presently work for a machine tool finance company that I worked closely with at Old Kent Leasing and this opportunity has worked out great !

So for anyone who is looking for a position in this industry the key is networking, networking, networking.

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“...prolonged macroeconomic weakness within the U.S. economy continues to affect the equipment leasing industry.”

Fitch Launches Larger Equipment Lease ABS Delinquency Index; Reaches Four-Year Low

NEW YORK-----Fitch Ratings' equipment lease asset-backed securities (ABS) delinquency index grew bigger and stronger in 2003, according to the latest edition of 'The ABS Equipment Expo'. All public and 144A Fitch-rated ABS equipment lease transactions since December 1997 were added to the index, which now tracks the performance of 92 transactions over a five-year period.

As of March 31, 2003, total delinquencies greater than 30 days past due fell 38 basis points (bps) from the prior quarter to reach 3.73%, the lowest level since November 1998. Despite improving delinquency trends, Fitch remains concerned about the increasing size of the 91+ day past due bucket relative to the smaller younger buckets. Over the past 15 months, the size of the 91+ past due bucket has steadily risen as a proportion of total delinquencies. During first-quarter 2003, the 91+ bucket rose 329 basis points over the prior quarter to reach 30.2% of the total.

Although first-quarter 2003 delinquencies hit four-year lows within Fitch's index, prolonged macroeconomic weakness within the U.S. economy continues to affect the equipment leasing industry. While the equipment lease issuers within Fitch's index are not immune to the ramifications of economic instability, those issuers securitizing their portfolios are proving to be somewhat isolated from negative performance trends, relative to the overall market as a result of industry tiering.

In addition to highlighting the delinquency index, Fitch's 'ABS Equipment Expo' newsletter features an 'Investor Roundtable' discussion focused on how the interaction between Fitch's ABS and Financial Institutions analysts affect an ABS transaction's ratings over time. The newsletter also spotlights Fitch's Financial Institution Groups' Risk-Adjusted Capital Analysis as a component of the group's rating methodology.

The ABS Equipment Expo' is a publication that tracks equipment lease ABS performance, industry trends and developments within the securitization market. Both current and historical editions of the newsletter are available on Fitch's website at 'www.fitchratings.com' or by contacting Products & Services at 212-908-0800.

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HPSC, Foothill Increase Credit Facility to $75 Million

HPSC Inc. (www.hpsc.com), a leading provider of financing to medical professionals, announced that it has expanded its credit facility led by Foothill Capital Corporation, a wholly-owned subsidiary of Wells Fargo & Company, from $50 million to $75 million. Citizens Financial Group and BankNorth Group will also participate in this expanded facility.

Said John W. Everets, chairman and CEO, "This increased line of credit will enable us to finance the continuing growth of our business. We are very pleased with the support that we are receiving from these financial institutions."

For more information, visit Foothill Capital on the Internet at www.foothillcapital.com.

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National Leasing Group partners with Canadian Western Bank

Winnipeg, , – Winnipeg based National Leasing has partnered with Canadian Western Bank as the preferred funder for CWB’s small ticket equipment financing customers.

CWB’s Equipment Financing & Leasing Division was formed in 1989, to provide

a western focus on the equipment financing & leasing requirements of the Manitoba, Saskatchewan, Alberta and BC marketplace. National Leasing is aligned with CWB’s Industrial Lending Division, serving customers in western Canada through 10 of CWB’s 27 branches.

National Leasing will work exclusively with CWB customers on lease transactions under $100K.

"National Leasing is pleased to be providing Canadian Western Bank's customers with a small ticket leasing solution. Canadian Western Bank's goal is to provide excellent customer service. They looked for the best service providers available, and we are pleased to have been recognized by them as a leader in our market place," says Estelle Rochon Fraser, Vice President Business Development & Marketing.

National Leasing’s ability to make credit decisions over the internet was one of the keys to the CWB partnership. FastCredit® scores over 50,000 credit applications per year, 24 hours a day, seven days a week. Over 200 users in the Canadian leasing industry, like CWB, use FastCredit® to process their transactions every day.

"We were looking for a partner who was technologically advanced, western based, and had a similar culture to CWB," says Jim Burke, Vice President CWB. "Like CWB, National is committed to providing superior levels of service to meet the equipment and financing needs of the western marketplace."

Headquartered in Winnipeg, Manitoba, National Leasing Group is 100% Canadian-owned and operated with local representation in thirteen centres across Canada. National Leasing Group has been providing financial solutions for business in Canada and the U.S. for over 30 years.

For more information, please contact:

Estelle Rochon Fraser

Vice President, Business Development & Marketing

National Leasing

Phone: (204) 954-9027

Toll Free: 1 800 665-1326

Email: estelle.rochon.fraser@nationalleasing.com

Peter Heavysege

Manager, Business Development

National Leasing

Phone: (204) 954-2256

Toll Free: 1 800 665-1326

Email: peter.heavysege@nationalleasing.com

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Fitch Ratings Affirms ILFC At 'AA-/F1+'; Outlook Remains Negative

Fitch Ratings affirms International Lease Finance Corp.'s (ILFC) senior debt

and commercial paper ratings at 'AA-' and 'F1+', respectively. The Rating

Outlook remains Negative. Approximately $17 billion of debt is covered by

Fitch's actions.

The rating affirmations reflect the financial support that ILFC has received

from its parent, American International Group, Inc. (AIG), which is rated 'AAA'

for senior debt with a Rating Outlook Negative by Fitch. The divergence in

ratings reflects AIG's decision not to guarantee ILFC's debt. However, Fitch

believes that ILFC is an important component of the AIG family of companies and

without the AIG support, its ratings would be lower. Fitch notes that ILFC's

bank credit facilities require that AIG maintain 51% ownership in the

subsidiary.

In addition, Fitch believes that ILFC will pursue multiple strategies to strengthen its short-term committed liquidity and reduce asset refinance risk. The key components of these initiatives will be a reduction in short-term debt, issuing longer-tenored term debt, and increasing funding diversity. While ILFC has issued term debt with final maturities at issuance in the three to seven year range, the company's most recent bond issuance included a 10-year tranche. Additionally, ILFC recently initiated a retail note program and has been increasingly active in the Euro medium-term note (MTN) market. The company has used secured financing provided by various European Export Credit Agencies in the past and Fitch believes that ILFC may seek additional funding from these entities in the future.

The Negative Outlook reflects the current challenges in the aircraft operating lease market. While ILFC has a strong market position relative to other major lessors, it has not completely evaded the sector's problems. Although the company does not have credit exposure to UAL Corp., Air Canada is one of ILFC's largest lessees. Also, the outbreak of the Severe Acute Respiratory Syndrome (SARS) is a concern. Specific to SARS, it is difficult to ascertain the ultimate impact on ILFC, however, as a result of its relationships with Cathay Pacific and Dragonair; the company has significant exposure to Asia/Pacific and Hong Kong. More importantly, growth may slow for many of the Chinese airlines, which had been bright spots in 2001 in 2002 in an otherwise difficult world commercial airline market. Nevertheless, as a result of ILFC's global diversity, Asia/Pacific represented only 22.5% of ILFC's revenues in 2002. As such, the problem appears manageable at present. Additionally, if some equipment is returned, ILFC's equipment remarketing acumen provides some comfort. Of the 93 aircraft in its fleet scheduled to come off of lease in 2003, the company successfully released 79 airplanes as of May 7, 2003.

Fitch also maintains concerns regarding ILFC's accelerated asset growth

during a period of unprecedented weakness in the global commercial airline

market. While the company has managed through the current down cycle

successfully, it reported its sixth consecutive year of record net income in

2002. Fitch believes that this trend is not sustainable due to the downward

pressure on lease rates for existing equipment. Return on equity declined in

2002 to 12.46% and stood at approximately 10.15% annualized for the first

quarter of 2003. Although ILFC's lease margin remained above 22% in the first

quarter of 2003, Fitch believes that it will trend downward for the remainder of

the year and into 2004 as a recovery in lease rates and equipment values is not

expected until 2005, at the earliest. Fitch notes that ILFC cancelled or delayed

orders for approximately 13 aircraft to be delivered beginning in 2004. More

cancellations could be forthcoming if lease demand remains weak. These actions

are prudent in light of the current operating environment and the pressure on

leverage but also symptomatic as to the depth of the downturn.

Based in Los Angeles, International Lease Finance Corp. is the largest

aircraft operating lessor in the world with a fleet of 590 owned and managed

aircraft at March 31, 2003. Based in New York City, American International Group

(AIG) is the publicly traded holding company of one of the world's largest

insurance and financial services groups. Companies of the group operate in

approximately 130 countries and jurisdictions. The principal activities of the

group are the underwriting of property and casualty (general) insurance and life

insurance. The company also operates financial services and asset management

businesses.

CONTACT: Fitch Ratings

Philip S. Walker, Jr., 212/908-0624 (CFA)

Matthew D. Gallino, 212/908-0218 (ILFC)

Julie T. Burke, 312/368-3158 (AIG)

James Jockle, 212/908-0547 (Media Relations)

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May 28 & 29, June 4 & 5 - D&B and Fair Isaac Host a Free Online Webcast to Help You More Effectively Manage Your Small Business Lease Portfolio.

As a Lessor, you have your unique portfolio management challenges – to make portfolio syndication an efficient and profitable process, to adhere to regulatory compliance requirements, and to improve the overall quality of your assets. When you deal with small businesses, these challenges can intensify.

D&B and Fair Isaac Corporation – partners in small business risk management and leaders within the Financial Services industry – can help you. We are pleased to introduce the Small Business Risk Portfolio Solution, a complete small business scoring and portfolio segmentation solution that can help you strategically manage your small business portfolio. Some of the benefits you can realize by incorporating the Small Business Risk Portfolio Solution into your current processes are:

Accurately Assess Risk across your entire small business portfolio, with nearly 100% resolution of your small business decisions based on D&B’s vast commercial database, consumer data from TransUnion, and your own internal performance data

Prioritize Collection Activity with statistically proven models along with your own account performance behavior to identify your high risk accounts before they become seriously delinquent

Satisfy Regulators, Syndicators and Investment Bankers with the ability to quantify and segment the risk in your portfolio and demonstrate that you are making consistent and objective decisions

Accurately Forecast Expected Losses to ensure you are carrying sufficient reserves and pricing for risk
Identify Your Best and Worst Accounts with our powerful portfolio segmentation, and make the appropriate credit policy decisions immediately on vendors, equipment types, sales regions, etc.

Reduce Costs of Full-Scale Annual Reviews by monitoring your portfolio and prioritizing risk at the account level

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Summit Systems plans to release its STP Messaging Framework, which is part of an STP transaction platform providing both internal and external

The framework, which is part of the pending version 3.5 release of Summit's STP transaction package, adds message and workflow management capabilities to its existing message generation, routing and delivery components.

The framework links internal business processes with external STP services such as matching agents, clearing and settlement institutions, central counter party and

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SUPERIOR, CO, -- Key Equipment Finance, one of the nation's largest bank-held equipment financing companies, has expanded its business aviation finance group with the addition of Anthony Struzik as regional aircraft manager for the central U.S. and Jennifer Van Dyne as national sales specialist. The group is managed by Gregory W. Babcock, senior vice president, and also includes regional aircraft managers John M. Anastas (for eastern U.S.) and Douglas K. Russell (for western U.S.).

Financial Services, Inc. in Richardson, Texas. He has also held management positions with Linc Monex Leasing and North Texas Credit Corp. He earned is bachelor of science in accounting and finance from Marquette University in Milwaukee and his masters in business administration in finance from Northern Illinois University in De Kalb. Mr. Struzik's office is in Dallas,

major airline. She earned her bachelor of science degree from Metropolitan State College in Denver, Colorado, where she majored in aerospace science and minored in business. Ms. Van Dyne will work out of Key Equipment Finance's world headquarters outside Boulder, Colorado.

Key Equipment Finance is an affiliate of KeyCorp (NYSE: KEY) and provides business-to-business equipment financing solutions to businesses of many types and sizes. They focus on four distinct markets:

to large corporate); equipment manufacturers, distributors and value-added resellers worldwide; federal, provincial, state and local governments as well as other public sector organizations; and

Headquartered outside Boulder, Colorado, Key Equipment Finance oversees an $8 billion equipment portfolio with annual originations of approximately $3 billion. The company has major management and operations bases in Toronto, Ontario; Albany, New York; London, England; and Sydney, Australia. The company, which operates in 24 countries and employs more than 600 people worldwide, has been in the equipment financing business for nearly 30 years. Additional information regarding Key Equipment Finance, its products and services can be obtained online at KEFonline.com.

Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $86 billion. Key companies provide investment management, retail and commercial banking, retirement, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. The company's businesses deliver their products and services through KeyCenters and offices; a network of approximately 2,400 ATMs; telephone banking centers (1.800.KEY2YOU); and a

TORRANCE, Calif.,-- American Honda Finance Corporation (AHFC), a wholly owned subsidiary of American Honda Motor Co., Inc., today announced that AHFC and its affiliates in July will suspend all vehicle leasing to residents of the states of New York, Connecticut and Rhode Island due to potential lawsuits stemming from Vicarious Liability laws that exist in those states.

Honda and other leasing companies have been working in those states to abolish archaic vicarious liability laws that allow financial institutions to be held liable in cases against lessees. On the books since the 1920s, vicarious liability laws have long outlived their original purpose and expose leasing companies to unlimited damages when the driver of the leased vehicle is negligent in an auto accident.

"We regret that we are forced to take this action and hope it will not inconvenience our customers, but, given this hostile leasing environment, American Honda Finance Corp. simply cannot offer leases in these states until the laws are changed," said Steve Smith, senior vice president of American Honda Finance Corp. "We are grateful to those legislators who have supported the leasing community's efforts thus far, but given the uncertainty of the legislative outcome, we are forced into this decision."

In order to offer customers a viable alternative to leasing, AHFC has recently enhanced its Leadership Purchase Plan to include a $1500 damage waiver on excess wear and use, and will also waive the vehicle disposition fee. The plan has many of the same benefits of a lease, but because the consumer is listed on the title as the owner, vicarious liability issues are eliminated.

"Our number one priority is always customer satisfaction and we will continue to honor our existing leases," explained Smith. "We are very disappointed that we are being forced to limit the choices available to consumers in these states."

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As momentum builds on Capital Hill for national junk e-mail standards and legislation, Bill Gates has sent a letter outlining Microsoft's (Quote, Company Info) position of how the spam crisis should be handled.

"Microsoft firmly believes that spam can be dramatically reduced, and that the solution rests squarely on the shoulders of industry and government. There is no silver-bullet solution to the problem. Rather, we believe that fully addressing this problem for the long-run requires a coordinated, multi-faceted approach that includes technology, industry self-regulation, effective legislation, and targeted enforcement against the most egregious spammers," Gates wrote in his letter -- a copy of which was obtained by internetnews.com.

Microsoft's Founder and Chairman sent the letter Wednesday addressed to Senators John McCain (R-AZ) and Ernest Hollings (D-SC). The letter arrives as Senate hearings on spam get underway on Wednesday and a flurry of lobbyists jockey for position in Washington ahead of anti-spam legislation that two Internet insiders say is practically a done deal.

"There is so much fervor on this issue, right now. There is no question the FTC will set some rules and national anti-spam legislation will likely pass and set guidelines between what is pornographic and fraudulent versus permission-based, opt-in e-mail," said Al DiGuido, CEO of BigFoot Interactive, a full-service e-mail communications company.

"We will probably have legislation passed this year. ISPs spend an enormous amount to block spam and anything that reduces spam and aggravation for ISPs and customers would be a good thing," said Stewart Baker, general counsel for the United States Internet Service Provider Association, or USISPA, a Washington-based association representing ISPs nationwide.

DiGuido said a number of companies, lobbyists and legislators are coming forward with a variety of different plans for new anti-spam laws, but he isn't certain they will stop the tide of spam.

"Will anti-spam legislation end spam? The answer is no, but it is a step in the right direction," DiGuido said, adding that many spammers will move their servers overseas. There also are questions how the government would enforce any laws that are passed, and how penalties or fines would be administered.

"Anti-spam legislation by itself is going to be very helpful, but isn't going to solve the problem, largely because spammers are not concerned with the law," Baker says.

Bill Gates in his letter to Congress advocates the use of filtering technology, emphasizing the importance of distinguishing between legitimate e-mail, and unwanted spam.

"The industry is building better filters every day, and is investing heavily in research and development to open the door to greater innovation. We need filtering technologies that are easier for consumers to use, and more effective at determining which email messages are spam and which are desired communications. This differentiation will greatly reduce the risk of falsely misidentifying legitimate email as spam," Gates wrote.

But DiGuido's says his biggest concern is that the legislation may go too far, and hurt legitimate e-mail marketers.

"We don't want permission-based marketing getting mixed up with the pornographic and fraudulent e-mailers. A distinction needs to be made between the two," DiGuido said.

But drawing the line between what is an legitimate and illegitimate e-mail is blurry, and Gates in his letter suggests an e-mail certification system is needed.

"We support the establishment of an independent trust authority or authorities around the globe that could spearhead industry best practices, and then serve as an ongoing resource for email certification and customer dispute resolution. In short, these authorities could provide mechanisms to identify legitimate email, making it easier for consumers and businesses to distinguish wanted mail from unwanted mail. Of course, any technology designed to establish the identity of legitimate commercial firms and associate them with a trusted sender 'seal' should be based on open standards and developed with broad input from affected industries," Gates wrote in his letter to Congress.

DiGuido said there is momentum to come up with a system that would have reputable marketers pay a nominal fee per message to ISPs for messages that would reach their customers. At the same time, spammers would not likely be willing to pay the fee, and their messages could be clearly blocked or filtered.

"We have not been pressing for solutions that have marketers pay ISPs for sending legitimate messages," Baker says.

Senator Charles Schumer (D-NY) is pushing for the .ADV designation to be attached to any advertising message, but delineating what is and isn't advertising may not be simple.

Microsoft's perspective on anti-spam legislation comes as Senators Conrad Burns (R-Mont.) and Ron Wyden (D-Ore.) are introducing anti-spam legislation. Another junk e-mail is expected in the House from Representatives Billy Tauzin (R-La.) and F. James Sensenbrenner Jr. (R-Wis.) to soon be introduced. A compromise of the two bills is ultimately likely to resemble an anti-spam law, which experts say will be passed before the end of this year.

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The 412 tornadoes that swept across parts of the United States in early May could turn out to be the costliest in U.S. history, according to the

Home insurance rates continue to rise, in part, because of the frequency and severity of catastrophes such as these, which began to increase dramatically during the 1990s.

National Oceanic and Atmospheric Administration began record keeping in 1950. Boston-based AIR Worldwide, has put the damages at $2.2 billion. Actual claims filed now exceed $1 billion, with damage assessment continuing in the affected areas. More than 40 people died and 300 counties in 19 states suffered losses.

The largest recorded tornado-related loss in U.S. history was in April 2001, when tornadoes and storms struck 16 states including Missouri, Nebraska, Texas, Kansas, Illinois and Pennsylvania, costing insurers $1.93 billion. Hurricanes, by

comparison, are topped by 1992's Andrew which clocked in at $19.6 billion and is the costliest natural disaster in American history.

Over the past 12 years, insurers paid out more than $100 billion in catastrophe-related lossesÂ¾ about $700 million per monthÂ¾ many times more than

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