Fitch Downgrades 2 Classes from 2 First Union Home Equity Loan Trust Issues.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 16, 2004 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. has downgraded the following First Union HEL issues: Series 1997-1 -- Class B is downgraded to 'BB-' from 'BBB-'. Series 1997-2 -- Class B is downgraded to 'BB-' from 'BBB-'. The negative rating actions taken reflect the poor performance of the underlying collateral in the transaction. The level of losses incurred has been higher than expected and have resulted in the depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able of overcollateralization (OC). Further information regarding current delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. , loss, and 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 statistics is available on the Fitch web site at 'www.fitchratings.com'. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion