Fitch Ratings Affirms SEQUILS-MINCS ING Ratings.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 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. affirms the following ratings assigned to SEQUILS ING and MINCS MINCS Mixed-Income New Communities Strategy ING effective immediately: -- $355,000,000 SEQUILS notes 'AA'; -- $58,653,000 MINCS notes 'BB-'. SEQUILS ING and MINCS ING are cash flow and synthetic CLOs, respectively, jointly obtaining exposures to a portfolio of high yield U.S. senior bank loans. SEQUILS obtains access to the economics of the loan portfolio via the purchase or the assignment of the loans using funds obtained from the SEQUILS note issuance. MINCS obtains access to the economics of the portfolio by synthetically referencing the portfolio via credit default swaps 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. between SEQUILS, JPMorgan Chase JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is one of the leaders in investment banking, financial services, asset and wealth management and private equity. With assets of $1. Bank, and MINCS. The MINCS program is essentially a first-loss, 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 to the SEQUILS program. ING Capital Advisors, Inc., is the asset manager. Positive performance since Fitch last rating action on the transactions confirms Fitch's opinion that the risk inherent in the various classes of securities are commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the ratings assigned. Specifically, defaulted assets and assets rated 'CCC' or lower represent approximately 2.3% of the portfolio and the credit quality of the overall portfolio remains unchanged at 'BB-/B+'. The SEQUILS reserve account balance increased by $2 million to $6.6 million, the SEQUILS threshold utilization test has decreased nearly 20% to 0.0%, and the MINCS deficit ratio has also improved by nearly 5% to 49.3%. Fitch assigned a rating for the SEQUILS notes to the timely return of interest and ultimate return of principal. The MINCS notes are rated to the ultimate payment of basic interest and principal. Additionally, the ratings assigned to the SEQUILS and MINCS notes do not address the payment of any additional interest or distributions. Fitch will continue to monitor and review this transaction as the leveraged loan market continues to experience tight loan spreads and historically high market values. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com. |
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