Fitch Downgrades $35 Million of Brit Alliance ABSpoke 2005-XI.NEW YORK -- Fitch downgrades one class of notes issued by Brit Alliance ABSpoke 2005-XI (Brit Alliance ABSpoke). This rating action is the result of Fitch's review process and the following rating action is effective immediately: --$35,000,000 class A notes downgrade to 'A-' from 'AA'. Brit Alliance Finance BV (Brit Alliance) is an unfunded managed synthetic collateralized debt obligation Synthetic Collateralized Debt Obligation An artificial collateralized debt obligation that is backed by a pool of credit derivatives. Notes: Rather than the traditional pools of assets such as bonds and loans, the pools of credit derivatives that back synthetic CDOs (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 ) that references a $673 million portfolio of various asset backed securities (ABS) assets. The transaction is designed to provide credit protection for realized losses on the reference portfolio through 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. between Brit Alliance and the swap counterparty, Morgan Stanley Capital Services Inc. (MSCS See Microsoft Cluster Server. ). The credit default swap references residential mortgage backed securities (RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities ), ABS, and commercial mortgage backed securities (CMBS CMBS See: Commercial Mortgage Backed Securities ). Brit Alliance will exit its reinvestment period on March 9, 2013. The downgrade is the result of deterioration in the credit quality of the reference portfolio. The class A attachment point has decreased due to a write down event. The rating addresses the likelihood that the floating rate payer will have to make a protection payment under the terms of the respective credit default swap. This rating analysis incorporated Fitch's revised methodology for rating structured finance CDOs. For more information, see 'Global Criteria Change for U.S. Structured Finance CDOs Reflects Heightened Subprime Risks,' dated Aug. 15, 2007 and available on the Derivative Fitch website at www.derivativefitch.com. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Oct. 18, 2006 and also available on Fitch's web site at www.derivativefitch.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.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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