Fitch Rates London Wall 2006-1, LTD.NEW YORK -- Fitch rates the securities of London Wall 2006-1, LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability as indicated follows: --EUR124,000,000 class A notes 'AAA'; --EUR76,000,000 class B1 notes 'AAA'; --US$30,000,000 class B2 notes 'AAA'; --EUR36,000,000 class C notes 'AAA'; --EUR36,000,000 class D notes 'A+'; --EUR28,000,000 class E notes 'BBB'. The ratings on the securities address the timely payment of interest and ultimate repayment of principal upon maturity. The transaction is a synthetic balance sheet securitization that references a EUR4 billion portfolio of loans, revolving credit facilities and other payment claims arising from certain guarantees to corporate entities. The ratings are based upon the credit quality of the reference portfolio, the credit enhancement provided by subordination for each tranche, the financial strength of Deutsche Bank AG (DBAG See Deutsche Börse AG. ) as swap counterparty, and the sound legal structure of the transaction. Fitch's default VECTOR model is used as a portfolio management tool in the transaction. The issuers have entered into 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. ('CDS') with DBAG, documented under an International Swaps and Derivatives Association The International Swaps and Derivatives Association (ISDA) is a trade organization of participants in the market for over-the-counter derivatives. It is headquartered in New York, and has created a standardized contract (the ISDA Master Agreement) to enter agreement (ISDA ISDA See: International Swap Dealers Association ), and receive a premium in return for credit protection on the reference portfolio. The proceeds of the issued securities will be used to purchase eligible investments (charged assets) pursuant to a bank account agreement among the issuer, the trustee and DBAG. Eligible investments will initially consist of euro-denominated cash deposit accounts on the books of DBAG. The collateral is pledged first to the counterparty to reimburse for credit losses on the reference portfolio during the term of the CDS and second to the noteholders for repayment of principal at maturity. Interest earned on the collateral during the term of the CDS is used in combination with the premium from DBAG to make quarterly notes payments. 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.fitchratings.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. |
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