Fitch Ratings Affirms ACAS Business Loan Trust 2005-1.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 affirms six classes of notes issued by ACAS ACAS Cardiology A clinical trial–Asymptomatic Carotid Atherosclerosis Study which evaluated the 5-yr risk of fatal and non-fatal stroke-primary outcome in Pts with asymptomatic but severe carotid atherosclerosis. See Carotid stenosis. Business Loan Trust 2005-1, (ACAS 2005-1). The following rating actions are effective immediately: -- $435,000,000 class A-1A notes affirmed at 'AAA'; -- $150,000,000 class A-2A notes affirmed at 'AAA'; -- $ 50,000,000 class A-2B notes affirmed at 'AAA'; -- $ 50,000,000 class B notes affirmed at 'AA'; -- $145,000,000 class C notes affirmed at 'A'; -- $ 90,000,000 class D notes affirmed at 'BBB'. ACAS 2005-1 is a collateralized loan obligation Collateralized loan obligation (CLO) A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations. (CLO CLO See: Collateralized Loan Obligation. ) that closed Oct. 4, 2005 and is managed by American Capital Strategies, Ltd. ACAS 2005-1 has a three year Replenishment Period ending Jan. 2009, during which time principal proceeds may be reinvested in additional loans. Loan substitution is limited to defined circumstances not to exceed 20% of the original portfolio balance. The portfolio is composed of 60% subordinate loans, 29.6% second lien loans and 10.4% senior loans. These affirmations are the result of stable collateral performance as well as stable 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 levels. Since close, the weighted average credit quality of the loans has remained the same. As of the April 25, 2006 trustee report, there have not been any substitutions made and there is one delinquent loan that comprises 0.1% of the portfolio. The original capital structure has not experienced any deleveraging to date. The ratings of the class A-1A, A-2A and A-2B notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the class B and C notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The rating of the class D notes addresses the likelihood that investors will receive their stated balance of principal by the legal final maturity date. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are 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'. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004 and also available on Fitch's 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.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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