Fitch Addresses Implications of Eligible Liquidity Facilities In New ABCP Report.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- How banks choose to address 'eligible liquidity facilities' on rated assets and securities held by asset-backed commercial paper (ABCP ABCP Asset-Backed Commercial Paper ABCP Associação Brasileira de Cimento Portland (Brazil) ABCP Associação Brasileira de Ciência Política ABCP American Board of Cardiovascular Perfusion ABCP Associate Business Continuity Planner ) programs may have credit implications for investors in the ABCP arena, 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. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . A new criteria report published by Fitch addresses effect of eligible liquidity facilities as specified by the draft proposals of the Bank of International Settlement (Basel) and the new capital rule issued by the U.S. regulatory agencies by establishing a rating adjustment table that will convert the actual rating of an asset held by the ABCP conduit to an equivalent rating when migration to a non-investment grade rating is considered as a default. Application of a rating translation table has become relevant given the new risk-based capital rules for ABCP liquidity facilities proposed by Basel. Moreover, the U.S. banking regulations have promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. a rule similar to that proposed by Basel that will become effective in September 2005, well in advance of Basel's implementation date. 'The new rule may cause banks to alter their liquidity facilities, which can have credit implications to ABCP investors,' said Aoto Kenmochi, Director, Fitch Ratings. 'In order to achieve more favorable capital treatment under the new rule, banks may specifically choose to amend their liquidity facilities so that they will no longer be required to fund against non-investment grade assets, the change of which would weaken their liquidity support.' The report goes into detail on how Fitch compiled historical rating migration data to quantify the migration risk to a non-investment grade rating, how the data was used to construct the rating adjustment table, and how the translated ratings will be used. During its upcoming New York conference on Wednesday, July 13, 2005 'Spotlight on the Short-Term Market,' Fitch will present the new criteria along with its new VECTOR CP methodology. The conference will be held at Cafe Gray, Time Warner Center The Time Warner Center is a mixed-use skyscraper developed by The Related Companies in New York City. Its design, by David Childs and Mustafa Kemal Abadan of Skidmore, Owings & Merrill, consists of two 229 m (750 ft) towers bridged by a multi-story atrium containing upscale retail , 10 Columbus Circle, Third Floor, in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . To register or for more information, contact Rachel Gold 212-908-0719 or at rachel.gold@fitchratings.com. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from this site, at all times. This document will remain on the public site for seven days. |
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