Fitch Affirms 'AAA' To Compartment CIF Assets 2001-1 Senior Units.Business Editors PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. & LONDON--(BUSINESS WIRE)--April 30, 2004 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. , the international rating agency, has affirmed the Long-term rating of 'AAA' to the senior units (parts) issued by compartment CIF (1) (Common Intermediate Format) A standard video format used in videoconferencing. CIF formats are defined by their resolution, and standards both above and below the original resolution have been established. The original CIF is also known as Full CIF (FCIF). Assets 2001-1 of Fonds Commun de Creances (FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. , the French securitisation vehicle) CIF Assets. CIF Assets is an FCC with segregated compartments established in April 2001. It was co-founded by Caisse Centrale du Credit Immobilier de France (3CIF, rated 'A+/F1' by Fitch), which acts, among others, as custodian, and by Paris Titrisation, an affiliate of Societe Generale bank (rated 'AA- (AA minus)/F1+'), which acts as management company. CIF Assets is used as a recurring refinancing vehicle by 3CIF. In this transaction, the FCC issues notes that are backed by residential mortgage loans advanced to French individuals by regional banks belonging to 3CIF. This rating is based on the legal and financial structure of CIF Assets as well as on the credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing generated by subordination of units (6.59%) and a reserve fund (1.18%). Until October 2003, the transaction comprised a revolving period during which CIF Assets was entitled to acquire new portfolios either by using the monies collected in respect of the loans (this is an 'ordinary purchase' wherein the amount of the current portfolio owned by CIF Assets is brought back to its original amount) or by issuing new fungible A description applied to items of which each unit is identical to every other unit, such as in the case of grain, oil, or flour. Fungible goods are those that can readily be estimated and replaced according to weight, measure, and amount. units (this is an 'extraordinary purchase' wherein the original portfolio amount is exceeded). CIF Assets is now allowed to undertake solely ordinary purchases until April 2005. The documentation has been amended to incorporate that change of structure. CIF Assets' total portfolio is currently approximately EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 5.60 billion and has been created through several assignments since April 2001. The latest assignment involved ten sellers including that have already assigned their loans in the past. The new assignment amounts to approximately EUR1.40bn and is financed with the issue of EUR1.4bn units of which EUR1.34bn senior units. This brings the total of the outstanding issuances to EUR5.60bn, of which approximately EUR5.23bn are senior units rated 'AAA' by Fitch. It is of note that the senior units are refinanced through CIF Euromortgage, a societe de credit foncier wholly owned by 3CIF that issues Obligations foncieres (covered bonds) also rated 'AAA' by Fitch. A report detailing Fitch's approach in rating residential mortgage backed transactions titled 'A Guide to Cash Flow Analysis for RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities in Europe' is available on the agency's website, www.fitchratings.com. |
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