Fitch Rates North Street Referenced Linked Notes 2002-3A Limited.Business Editors CHICAGO--(BUSINESS WIRE)--Dec. 16, 2002 North Street Referenced Linked Notes, 2002-3A Limited has issued $100 million of floating-rate notes which are rated 'AAA' by 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 rating addresses the timely payment of interest and ultimate repayment of principal by the final maturity date. The rating of the note is based on the quality of the reference portfolio, the 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 provided by subordination, the credit quality of the swap and repo Repo An agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price. See: Repurchase agreement. repo See repurchase agreement (RP). counterparty and the transactions' sound financial and legal structure. The transaction is a partially funded synthetic securitization, with a reference portfolio comprised of 'AAA' and 'AA' rated structured finance securities. The issuer has 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 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 and receives the CDS premium in return for the reimbursement of losses on the reference portfolio. The $2 billion reference portfolio has a maximum weighted average credit quality equivalent to 'AA' using Fitch rating factors. The proceeds of the issued notes will be used to enter into a $100 million repurchase agreement. At maturity or early termination, the repo counterparty will repurchase the 'AAA' repo collateral and the proceeds will be available to repay principal to the note, net of any credit payments due under the credit swap. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion