Fitch Places DVI Equipment & Healthcare Securitizations on Rtg Watch Neg.Business Editors CHICAGO--(BUSINESS WIRE)--July 1, 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. places all DVI (1) (Digital Video Interactive) An earlier compression technique that provided up to 72 minutes of full-screen video on a CD-ROM. Acquired by Intel in 1988 from RCA's Sarnoff Research labs, Princeton, NJ, DVI never caught on. , Inc. (DVI) sponsored medical equipment and healthcare receivable asset-backed transactions on Rating Watch Negative. This action reflects the potential for increased operational and performance risk as a result of the same factors that contributed to Fitch's downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of DVI's senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. rating to 'CCC' from 'B+' (See Fitch fitch: see polecat. Press Release 'Fitch Lowers DVI's Unsecured Debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. to 'CCC'; Remains on Rating Watch Negative,' dated June June: see month. 30, 2003). Fitch is concerned that reduced financial flexibility resulting from the resignation of DVI's outside auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together and the Securities and Exchange Commission's subsequent rejection Rejection Refusal by a bank to grant credit, usually because of the applicants financial history, or refusal to accept a security presented to complete a trade, usually because of a lack of proper endorsements or violation of rules of a firm. of DVI's most recent quarterly financial statements could ultimately pressure ABS (Automatic Backup System) See backup program. collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although performance. While heavily discounted in Fitch's analysis, DVI's ability to continue to support the medical equipment securitizations through substitutions and servicer advances may be challenged, adding to the potential for performance volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the . Further, DVI's announcement that they have hired UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control to assist in conducting a review of the strategic alternatives available could also result in additional operational volatility. Fitch's ABS Group will continue to work in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with Fitch's Financial Institutions Group, keeping current on DVI's financial status, funding capabilities and auditor auditor n. an accountant who conducts an audit to verify the accuracy of the financial records and accounting practices of a business or government. A proper audit will point out deficiencies in accounting and other financial operations. selection. Additionally, Fitch expects to complete an on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. review of DVI's operations in the near future, while maintaining dialogue with the securitizations' trustees and, in the case of the equipment securitizations, U.S. Bank, N.A., the named back up servicer. Fitch will also continue to closely monitor performance of the transactions, and will notify the market in the case of any additional developments. Based on the above reviews, Fitch may affirm or downgrade the classes listed below. Fitch's action affects 60 classes ($1.8 billion) of 9 DVI medical equipment transactions and five classes ($50.3 million) of 2 DVI Business Credit healthcare receivable transactions as follows: DVI Receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed VIII, L.L.C., Series 1999-1 -- Class A-5 notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables X, L.L.C., Series 1999-2, all outstanding classes; -- Class A-4 notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XI, L.L.C., Series 2000-1. all outstanding classes; -- Class A-4 notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XII, L.L.C., Series 2000-2, all outstanding classes; -- Class A-4 notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XIV, L.L.C., Series 2001-1, all outstanding classes; -- Class A-3 and A-4 notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XVI, L.L.C., Series 2001-2, all outstanding classes; -- Class A-3 and A-4 notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XVII, L.L.C., Series 2002-1, all outstanding classes; -- Class A-2, A-3A and A-3B notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XVIII, L.L.C., Series 2002-2, all outstanding classes; -- Class A-1 notes are rated 'F1+' and are placed on Rating Watch Negative -- Class A-2A, A-2B, A-3A and A-3B notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. DVI Receivables XIX, L.L.C., Series 2003-1, all outstanding classes. -- Class A-1 notes are rated 'F1+' and are placed on Rating Watch Negative -- Class A-2A, A-2B, A-3A and A-3B notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class B notes are rated 'AA' and are placed on Rating Watch Negative. -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E1 and E2 notes are rated 'BB' and are placed on Rating Watch Negative. DVI Business Credit Receivables Corp. III, Series 1998-1 -- Class B notes are rated 'AAA' and are placed on Rating Watch Negative. -- Class C notes are rated 'CCC' and remain on Rating Watch Negative. DVI Business Credit Receivables Corp. III, Series 1999-1 -- Class C notes are rated 'A' and are placed on Rating Watch Negative. -- Class D notes are rated 'BBB' and are placed on Rating Watch Negative. -- Class E notes are rated 'BB' and are placed on Rating Watch Negative. |
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