Fitch Downgrades Segesta Finance S.r.l. Class A & B Notes.Business Editors LONDON--(BUSINESS WIRE)--April 2, 2003 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 today downgraded the ratings for Segesta Finance S.r.l. as follows: -- Class A notes to 'AA-' from 'AA+'; -- Class B notes to 'B+' from 'BBB-'. Segesta Finance S.r.l is a special purpose vehicle (SPV SPV sheeppox virus. ) incorporated under the laws of Italy with limited liability. The diverse portfolio contains corporate, sovereign and ABS assets. The SPV also provides protection on a portfolio of credit default swaps 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. . Fitch's rating action reflects the general deterioration of the pool and the two credit events to date. Both credit events have been worked out resulting in total losses of 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. 22.3 million. One asset in the portfolio, with an exposure of EUR15 million, is rated 'CCC+', Rating Watch Negative by Fitch. The class A notes started amortising in January 2002, and will continue to do so on a semi-annual basis. Fitch believes that despite the amortisation there is insufficient 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 to support a 'AA+' rating for the class A notes. Fitch will closely monitor any changes to the existing portfolio and will take further action as required. Deal information and historical performance data for this transaction is available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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