Fitch Assigns Hemisphere CDO Notes Final 'AAA' Ratings.LONDON -- 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. , the international rating agency, has assigned final ratings to Hemisphere 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 floating-rate secured portfolio notes due 2012 as follows: -- USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 10,000,000 class A-1U7 series number 5, 'AAA' The above notes are issued by Hemisphere CDO Plc, a special purpose vehicle incorporated under the laws of Ireland. -- USD25,000,000 senior class A-1U7 tranche A notes, 'AAA' The above notes are issued by Hemisphere CDO (Cayman Islands No. 1) Limited (issuer) and Hemisphere CDO (Delaware No. 1) Corp (co-issuer). The aforementioned issuer and co-issuer are special purpose vehicles incorporated under the laws of the Cayman Islands and Delaware, respectively. The ratings address timely payment of interest and ultimate payment of principal and are linked to the credit quality of the collateral securities, Bayerische Landesbank Pfandbriefe, rated 'AAA' by Fitch. The ratings are based on the credit quality of the underlying reference portfolio, available credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing of 30.5%, the credit quality of the collateral securities and arrangements provided under the credit support annex A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions. It is one of the four parts that make up an ISDA contract but is not mandatory. , and the sound legal structure of the transaction. Each of the notes listed above has a scheduled maturity date of July 9, 2012 and absorbs the credit risk of 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 JPMorgan Chase Bank, N.A. London (JPMorgan). Each credit default swap with JPMorgan references the same portfolio of 45 emerging-market entities. Currently, the portfolio comprises 80% sovereigns and 20% corporates, with the following geographical distribution: 24% Asia, 21% Eastern Europe, 42.5% Latin America, and 12.5% Africa/Middle East. At any point in time, subject to reference portfolio restrictions, the portfolio manager, Bluebay Asset Management, has the ability to remove and add entities to the portfolio. |
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