Fitch Affirms MPF Three Ltd.'s Class A Shares at 'AAA/V4'.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 5, 2003 MPF MPF mitosis-promoting factor. Three Limited's class A participating nonvoting shares are affirmed at 'AAA/V4' by 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. . Bond funds rated in the 'AAA' category meet the highest standards with respect to the credit quality of the fund's underlying assets, as well as the fund's management and operations. The weighted average default probability of the fund's portfolio is consistent with the default probability of an 'AAA' rated fixed income obligation. MPF Three's portfolio consists exclusively of 'AAA' securities issued or guaranteed by the U.S. government and certain agencies and instrumentalities, as well as collateralized mortgage obligations Collateralized mortgage obligation (CMO) A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. (CMOs) collateralized by these securities. MPF Three will enter into short-term funding arrangements, primarily in the form of reverse repurchase agreements Reverse Repurchase Agreement The purchase of securities with the agreement to sell them at a higher price at a specific future date. For the party selling the security (and agreeing to repurchase it in the future) it is a repo for the party on the other end of the , forward commitment dollar rolls, and total return swaps 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. , at a leverage ratio of 4:1. The portfolio will have a minimum duration of -0.5 years and a maximum duration of 0.5 years. Bond funds rated in the 'V4' category are considered to have moderate market risk. The issuer's net asset value and total returns are expected to perform consistently over intermediate- to long-term holding periods, but will exhibit some variability over shorter periods due to greater exposure to interest rates and changing market conditions. Bond fund volatility ratings are assigned on a scale of 'V1' (least volatile) through 'V10' (most volatile). Volatility ratings reflect the relative sensitivity of the fund's total return and market price to changes in interest rates, prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rates, and other market conditions. |
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