Fitch Rates Tranche A HEARTLAND Secured Floating Notes 2006-3 '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 assigns rating to the $25,000,000 Tranche A HEARTLAND secured floating rate notes due 2011, Series 2006-3 (which closed on December 22, 2006), issued by Heartland Funding p.l.c. (the issuer) as follows: -- $25,000,000 Tranche A HEARTLAND secured floating rate notes due 2011, Series 2006-3, 'AAA'. Heartland Funding p.l.c. is a managed synthetic collateralized debt obligation Synthetic Collateralized Debt Obligation An artificial collateralized debt obligation that is backed by a pool of credit derivatives. Notes: Rather than the traditional pools of assets such as bonds and loans, the pools of credit derivatives that back synthetic CDOs (CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ) designed to provide credit protection for realized losses on a reference portfolio through a portfolio 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) between the issuer and the swap counterparty, Calyon, France (Calyon). The $10 billion portfolio consists of 100 investment grade bonds (97 corporate bonds and 3 sovereigns). The proceeds from the issuance are used to enter into the investment agreement with Calyon, the investment provider. The investment agreement is put in place for LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). payments and receipt of par upon liquidation of the charged assets at maturity. A rating stability analysis for $25 million 'AAA' Tranche A HEARTLAND was performed, and a stability score of 'ST1' was assigned. Estimated one-year likelihood of retaining the original rating is 94%. For more information about the rating stability analysis please see 'Stability Score Report for Heartland Funding p.l.c.', dated December 20, 2006, available on the 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. web site at www.fitchratings.com. The notes are rated to the timely payment of interest and the ultimate repayment of principal on the maturity date. The rating is based upon the credit quality of the reference portfolio, the credit enhancement provided by subordination for the tranche, the strength of the counterparties, and the transaction's sound financial and legal structures. Fitch will monitor the performance of this transaction. Deal information is available on the Fitch Ratings web site at www.fitchratings.com. 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.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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