External credit enhancements

Consider below

Originator has a credit rating B

SPV has a credit rating A

Third party who provides letter of credit has a credit rating AAA

What will be the credit rating of the issue under weak link approach?

I think it would be AAA given the letter of credit is provided by a third party who is backed with such a rating.

Did you find the answer?

The information given is inclusive but the rating cannot be greater than AAA.

Yes Galli is right… it would be AAA. Elans is wrong in their notes.