Fitch Rates Iridal Public Limited Company/TCW Oak Canyon Funding 'AAA'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 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. assigns an 'AAA' rating to Iridal Public Limited Company/TCW Oak Canyon Funding 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. 3,000,000 tranche B floating-rate credit link notes. The transaction is a single tranche, synthetic managed collateralized swap obligation giving investors leveraged access to the credit risk of a diverse portfolio of credit default swaps comprising 135 investment-grade, corporate-reference entities. Iridal Plc gains access to the credit risk of the portfolio via a credit default swap with the Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. (RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). ), London Branch, as swap counterparty. This trade has a scheduled maturity date of March 20, 2012. TCW TCW Total Carat Weight TCW Temporal Cold War (Star Trek Enterprise) TCW Troop Carrier Wing TCW Turnbuckle Championship Wrestling TCW Tasty Coma Wife (Scrubs episode) Asset Management Company will manage the portfolio. The rating of the notes addresses the likelihood that investors will receive full and timely payments of interest and ultimate receipt of principal by the scheduled maturity date. Iridal Plc provides protection to the swap counterparty via a credit default swap that is collateralized with the issuance proceeds of the notes. The proceeds are invested in notes rated 'AAA'. Iridal Plc has credit support securities from RBC, whereby RBC agrees to deliver additional collateral in the amount that will maintain the market value of the collateral at 120% of the note balance through the duration of the credit default swap. Iridal Plc pays the swap counterparty for any losses due to credit events experienced in the portfolio above the threshold amount up to the balance on the notes by liquidating collateral. Trading gains or losses from the substitution of reference entities in and out of the portfolio are recorded in the trading reserve account (TRA TRA Training TRA Transfer TRA Transition TRA Tennessee Regulatory Authority TRA Telecommunications Regulatory Authority (Oman) TRA Tax Reform Act (1976, 1984, or 1986) TRA Teachers Retirement Association ), which provides a mechanism for the noteholders to recapture payments made to the swap counterparty under the credit default swap. If trading losses reduce the TRA balance to zero, then trading gains and losses be will be recorded by adjusting the threshold amount. The ratings are based upon the structure of the issuer, the financial strength of Royal Bank of Canada (rated 'F1+/AA' by Fitch), as the swap provider, and the investment management capabilities of TCW Asset Management Company, as the portfolio manager. Fitch will monitor the performance of this transaction. Deal information and historical data on Iridal Plc is available on the Fitch Ratings web site at www.fitchratings.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion