Fitch Affirms SEQUILS-Centurion V, Ltd. and MINCS-Centurion V, Ltd.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 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 following ratings assigned to SEQUILS-Centurion V, Ltd. and MINCS-Centurion V, Ltd. effective immediately: -- $408,000,000 SEQUILS class A senior secured floating-rate term notes 'AAA'; -- $30,000,000 SEQUILS class B second priority senior secured floating-rate term notes 'A'; -- $52,000,000 MINCS MINCS Mixed-Income New Communities Strategy floating-rate third priority secured notes 'BBB'. SEQUILS-Centurion and MINCS-Centurion are cash flow and synthetic collateralized loan obligation Collateralized loan obligation (CLO) A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations. (CLO CLO See: Collateralized Loan Obligation. ), respectively, jointly obtaining exposures to a portfolio of high yield U.S. senior bank loans. SEQUILS obtains access to the economics of the loan portfolio via the purchase or the assignment of the loans using funds obtained from the SEQUILS note issuance. MINCS obtains access to the economics of the portfolio by synthetically referencing the portfolio via credit default swaps between SEQUILS, Morgan Guaranty Trust, and MINCS. The MINCS program is essentially a first-loss, credit enhancement to the SEQUILS program. Riversource Investments, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , formerly know as American Express Asset Management Group Inc., is the asset manager. Since the last review of the transaction in August 2003, positive year-over-year performance of the transactions as of the July 2005 trustee report confirms Fitch's opinion that the risk inherent in the various classes of securities are commensurate with the ratings assigned. Specifically, there are no defaulted assets and less than 1.0% of the assets are rated 'CCC' or lower. The credit quality of the overall portfolio remains unchanged at 'BB-/B+'. The SEQUILS reserve account balance increased by $1.5 million to $2.5 million and the SEQUILS threshold utilization test and MINCS deficit ratio were maintained at or near 0%. Fitch assigned a rating for the SEQUILS notes to the timely return of interest and ultimate return of principal. The MINCS notes are rated to the ultimate payment of Basic Interest and principal. Additionally, the ratings assigned to the SEQUILS and MINCS notes do not address the payment of any additional interest or distributions. Fitch will continue to monitor and review this transaction as the leveraged loan market continues to experience tight loan spreads and historically high market values. Additional deal information and historical data are available on the Fitch Ratings 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