American Capital Access Holdings Limited Responds to Standard & Poor's Ratings Action.Business Editors NEW YORK--(BUSINESS WIRE)--May 5, 2004 American Capital Access Holdings Limited's response to the action by Standard & Poor's Corporation in placing ACA ACA - Application Control Architecture Financial Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Corp on credit watch negative is the following: S&P's ratings action formalizes that which has already been known to the markets. The company requires additional capital to support its business plan or may otherwise be required to slow its business production. The recent departure of ACA's Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. referenced in S&P's ratings action has not itself resulted in any disruption in the business for which that person was responsible, specifically the origination of our proprietary CDOs and the management of their underlying assets, and in our opinion should not materially impact the successful recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of the company. As we have previously announced publicly, we have filed a Registration Statement on Form S-1 with the Securities and Exchange Commission with respect to the sale of common shares. The amount of new capital that would be raised pursuant to the public offering is expected to be sufficient to satisfy rating agency capital adequacy requirements. Since we are still in registration, what can be said about the operations of the company is legally limited. However, we can say that there are currently no material adverse issues or problems related to the on-going operations of the company. Further, S&P's ratings action does not trigger any collateralization In medicine, collateralization, also vessel collaterlization and blood vessel collateralization, is the growth of a blood vessel or several blood vessels that serve the same end organ or vascular bed as another blood vessel that cannot adequately supply that end organ requirements or "claw backs" with respect to our current book of business. American Capital Access (ACA) is a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment insurance company actively participating in the municipal finance and structured finance markets. For questions or comments, please contact Cathy Bailey or Jennifer Leavitt in the Marketing Department at 212-375-2000. |
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