Fitch Ratings Affirms SERVES 1998-1.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 Ratings affirms the $87,084,000 Structured Enhanced Return Vehicle Trust notes, series 1998-1 (SERVES 1998-1) at 'BBB'. SERVES 1998-1 is a synthetic 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 affords investors leveraged exposure to a diversified portfolio of high-yield loans. The transaction utilizes a total rate of return swap between the SERVES trust and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , N.A. to obtain the leveraged exposure. While there was not a significant change in the reference portfolio's weighted average rating factor, there were increases to the collateral and cumulative payment accounts as well as the mark to market value of the portfolio. Additionally, AEGON USA Investment Management, Inc, the portfolio manager, has effectively reduced the number of impaired assets in the portfolio. Subsequently, a review of the transaction has led Fitch to conclude that the 'BBB' rating of the notes is representative of the current credit risk to investors. Fitch will continue to monitor this transaction. Deal information and historical data on SERVES 1998-1 is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and 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 this site, at all times. This document will remain on the public site for seven days. |
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