Fitch: Structured Transactions Weather Emerging Market.Business Editors NEW YORK--(BUSINESS WIRE)--June 18, 2001 Of the 148 emerging market structured finance transactions rated by the international rating agency Fitch fitch: see polecat. , not one investment-grade investment-grade Of, relating to, or being a bond suitable for purchase by institutions under the prudent man rule. Investment-grade is restricted to those bonds graded BBB and above by Standard & Poor's and graded Baa3 and above by Moody's. transaction has defaulted, despite the occurrence of economic crises and shocks, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new report published today. The majority of these 148 transactions are rated in the `BBB' category, and this performance is better than expected for the given category. `Structured finance transactions have been one of the few avenues available for borrowers in emerging-market countries to achieve investment-grade ratings,' said Greg Kabance, senior director, Fitch. `The sound credit performance of Fitch-rated transactions issued to date bodes well for the continued viability of structured finance as an alternative for borrowers in emerging markets.' The new report details various economic crises experienced in emerging markets and the performance of certain structured-finance deals during these periods. Included in this overview are the 2001 Turkish Crisis, the Pakistan Debt Crisis (1998-2001), the Indonesian Crisis (1998-2001), and the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Peso Devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. (1994-1995). `While there are a variety of new structures emerging each year, the most common type of structured finance debt issued by emerging-market issuers continues to be future-flow transactions,' said Kabance. `For emerging market securitizations, Fitch analyzes the protection of the underlying assets from the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of the generating entity as well as the country risks that could disrupt the underlying cash flows of the transaction.' The report `Under Pressure: Structured Transactions in Emerging Market Stress - Update 2001' can be found on FitchResearch, Fitch's subscription-based web site located at 'www.fitchratings.com'. |
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