Fitch Assigns Oakham Rated S.A. Series 2 Final 'A+' Rating.LONDON -- Fitch Ratings, the international rating agency, has today assigned Oakham Rated S.A. (Oakham Rated) Series 2's NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. 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. 346 million secured limited recourse fixed rate credit-linked notes (ISIN: XS0223795930) due 2015 a final 'A+' rating. The notes are issued under the EUR EUR In currencies, this is the abbreviation for the Euro. 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. 5 billion limited recourse secured note programme of European Structured Investments S.A. Following the initial closing on the 3 August, the notes have been increased to NOK346m from NOK320m as of today. The transaction represents a synthetic managed single-tier collateralised debt obligation (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 ). The rating of the notes addresses timely payment of interest and ultimate payment of principal and is linked to the rating of the charged assets. The ratings are based on the credit quality of the underlying reference entities, the charged assets and arrangements, available credit enhancement (equal to NOK1,254,250,000 or 7.25% of the reference portfolio) and the sound legal structure of the transaction. In the transaction, Oakham Rated, a special purpose vehicle incorporated under the laws of Luxembourg, enters into 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. (CDS) agreement with Bear Stearns Credit Products Inc (BSCP) under which BSCP purchases NOK346m of protection over 10 years on a managed reference portfolio of 110 non-equally weighted reference entities. The portfolio is managed by Ixis Asset Management subject to eligibility criteria comprising guidelines and restrictions on replacements and substitutions. Oakham Rated is investing the proceeds from the note issuance into a 'AAA'-rated covered bond issued by Depfa ACS (Asynchronous Communications Server) See network access server. Bank and denominated in Norwegian kronas. A forward agreement entered into by Oakham Rated and BSCP will provide market value protection on the collateral for the noteholders provided that no event of default has occurred and the collateral has not been downgraded below 'BBB-' (BBB minus). In addition, Oakham enters into an interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. with BSCP to exchange cash flows from the charged assets into payments, which when added to CDS premiums, will comprise total interest payments to noteholders. Upon a credit event of any of the obligors in the reference portfolio, losses will be determined and once aggregate losses in the reference portfolio exceed the subordination amount, the notes will be written down. Fitch's default VECTOR model has been used to quantify the risk of losses in the reference portfolio exceeding the tranche's credit enhancement. 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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