Amid the recent consumer credit scare on the Korean peninsula, Hyundai Motor Co. recently priced the first-ever cross-border auto ABS backed by Korean-originated loans. The deal, led by stateside neophyte Standard Chartered Bank, was done with a senior/subordinate structure, unlike the only other Korean cross-border transaction, issued by a vehicle of LG Card in December 2001.

Pricing without a wrap, the two-tranche deal achieved a rating of Aa3' from Moody's Investors Service - the only rating agency on the transaction. Subordination on the transaction totals 27%, and is in the form of a certificated bond retained by the issuer.

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