Fitch Affirms 4 Classes of Diversified Strategies CFO, S.A.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 -- Fitch Ratings affirms four classes of Diversified Strategies CFO See Chief Financial Officer. , S.A. These affirmations are the result of Fitch's review process. The following rating actions are effective immediately: --$125,000,000 class A secured notes affirmed at 'AAA'; --$32,500,000 class B secured notes affirmed at 'A'; --$10,000,000 class C1 secured notes affirmed at 'BBB'; --EUR16,200,000 class C2 secured notes affirmed at 'BBB'. Diversified Strategies CFO, S.A. is a collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ) that closed June 26, 2002 and is managed by Investcorp Management Services Limited. Diversified Strategies CFO, S.A. is an alternative investment market value CDO. Included in this review, Fitch Ratings discussed the current state of the portfolio with the asset manager and their portfolio management strategy going forward. In addition, Fitch Ratings conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. These affirmations are the result of the deals capital structure of the transaction, the quality of the collateral, the overcollateralization, and the experience of IMSL IMSL International Mathematical and Statistical Library IMSL International Mathematics & Statistics Library IMSL Inverted Microstrip Line IMSL Injection Molding Systems Limited IMSL International Mathematical Subroutine Library as the investment manager. Currently the August 31, 2006 trustee report is failing two tests. Its minimum percentage of NAV See navigation system and navigation bar. to be held in managed accounts plus cash is failing by 0.20% and the Target Liquidity < = 3 months test is failing by 7.98%. Fitch feels these failures will not negatively affect the performance of the deal due to the amount of cushion currently available. The ratings on Diversified Strategies CFO notes addresses the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004 and also available on Fitch's web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other 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 the 'Code of Conduct' section of this site. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion