Fitch Affirms ABACUS 2005-7.NEW YORK -- Fitch affirms two classes of notes issued by ABACUS 2005-7. These affirmations are the result of Fitch's review process and are effective immediately: --$100,000,000 variable leverage super senior notes at 'AAA'; --$30,000,000 variable leverage super senior notes series 2 at 'AAA'. ABACUS 2005-7 is a leveraged super senior transaction that has issued $130 million in credit linked notes. The note proceeds collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. a credit default swap Credit Default Swap A swap designed to transfer the credit exposure of fixed income products between parties. Notes: The buyer of a credit swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the product. with Goldman Sachs Capital Markets, L.P. (GSCM GSCM Global Supply Chain Management GSCM Green Supply Chain Management GSCM Geometric-Based Stochastic Channel Model GSCM Master Chief Gas Turbine System Technician (Naval Rating) GSCM Graphical Software Configuration Management ), the protection buyer, that references a $6 billion static portfolio of 30 'AAA' rated commercial mortgage-backed security Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. (CMBS CMBS See: Commercial Mortgage Backed Securities ) assets. The obligations of GSCM under the credit default swap are guaranteed by Goldman Sachs Group, Inc. (GS Group). The credit default swap synthetically transfers credit risk on the portion of the $6 billion reference portfolio from GSCM to the issuer with respect to credit events. The ratings are based upon the credit quality of the reference portfolio, the legal structure of the transaction, the financial strength of the counterparties and their guarantors, as well as the credit quality of the trust assets. There have been no credit events since the deal's inception. In addition, ratings have remained stable while spreads have tightened. The ratings assigned to the notes address the timely payment of interest and the ultimate payment of principal of the notes at maturity. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 4, 2006 and also available at www.derivativefitch.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.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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