Fitch Affirms INVESCO Navigator Fund, Ltd.CHICAGO -- 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. affirms the income notes issued by INVESCO Navigator Fund (Offshore), Ltd. and the units of INVESCO Navigator Fund (Onshore), LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (collectively, securities issued by INVESCO Navigator Fund). The affirmations are the result of Fitch's review process. The following rating action is effective immediately: --$125,000,000 securities affirmed at 'BBB'. INVESCO Navigator Fund closed on November 17, 2005. The Fund gains a leveraged exposure to a diversified portfolio primarily of bank loans via a total return swap Total Return Swap Any swap in which the non-floating rate side is based on the total return of an equity or fixed income instrument with a life longer than the swap. Notes: Total return swaps are most common in equity or physical commodity markets. (TRS See traffic engineering methods. TRS - term rewriting system ). The swap will provide approximately 2-4.5 times (x) leveraged return on a maximum initial pool of $555 million of reference obligations. The proceeds from the securities issuance are invested in bank loans, with the additional financing provided by the swap counterparty (Atlas Capital Funding, Ltd) and through a revolving loan (APEX) with Wachovia Bank, National Association. The revolving loan is drawn automatically to satisfy the issuer's collateral delivery requirements The stipulation that requires that an item of materiel must be delivered in the total quantity required by the date required. under the swap agreement, pay capital depreciation payments, along with certain other amounts owed to the swap counterparty, and provide leverage in certain circumstances. The reference obligations are subject to removal and/or addition in accordance with the terms of the swap agreement and the portfolio management agreement with INVESCO Senior Secured Management, Inc. The scheduled swap program termination date termination date, n See expiration date. is five years from closing, with an annual renewal option. This affirmation is the result of the deal's stable collateral performance since close, the structure of the issuer, the financial strength of the swap counterparty, and Fitch Rating's modeling results under various stress scenarios. As of July 31, 2006, the weighted average credit quality of the reference portfolio was 'BB-'/'B+' and weighted average spread was 2.4%. The rating of the securities addresses the likelihood of the return of the original investment by the tenth anniversary of the issuance. 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. |
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