Fitch Ratings Affirms Regional Diversified Funding Ltd.Business Editors CHICAGO--(BUSINESS WIRE)--May 28, 2003 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. has affirmed the rating of the following notes issued by Regional Diversified Funding Diversified Fund A type of investment fund that contains a wide array of securities and is adequately diversified. A mutual fund classified as a "diversified fund" will actively maintain a high level of diversification in its holdings, thus reducing the amount of risk in the fund, Ltd.: -- $220,987,823 senior notes 'A+'. In March 2000, Regional Diversified Funding Ltd. issued $241.7 million of various classes of notes and equity and invested the proceeds in a portfolio of U.S. bank trust preferred securities. Regional Diversified Funding Ltd. is an unmanaged collateralized bond obligation Collateralized Bond Obligation (CBO) Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. (CBO CBO See: Collateralized Bond Obligation. ). Fitch reviewed the transaction and re-scored all of the underlying collateral using Fitch's bank scoring model. There are currently two obligors that are deferring their interest payments. Upon deferral, the optimal principal distribution amount (OPDA OPDA Independent Progressive Democratic Alternative (Suriname) OPDA Oxydiphthalic Anhydride OPDA Optimal Protection Domain Allocation ) feature diverts equity cash to pay down the senior notes until (i) the full amount of the deferring assets are captured or, (ii) the deferring assets resume payment of current interest. Fitch reviewed the obligors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the two deferring assets and believes that both should resume payment of interest in the near term. Following the analysis of the transaction, there is sufficient subordination and excess spread to withstand Fitch's stress tests at the current rating level. The deal has one principal coverage test which is currently at 96.85% with a trigger of 101.5%. Deal information and historical performance data for this transaction is available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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