Fitch Releases Report & Rates Aracruz Securitization 'BBB'.Business Editors CHICAGO--(BUSINESS WIRE)--May 14, 2004 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 released its report and assigned a rating of 'BBB' to the $175 million structured financing from Arcel Finance Ltd., a Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. special-purpose vehicle A vehicle incorporating a special chassis and designed to meet a specialized requirement. (SPV SPV sheeppox virus. ). The underlying issuance is a securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of existing and future export receivables originated by Aracruz Celulose S.A. (Aracruz), a Brazilian pulp and paper company. In 2002, Aracruz issued its first tranche out of the Arcel Finance Limited (Arcel) program. The 2002 issuance was for $250 million with a seven-year tenor. This issuance was rated 'AAA' by Fitch in recognition of a full financial guarantee provided by XL Capital Assurance, Inc. The second tranche was issued in 2003 with an eight year tenor for $400 million; this issuance was rated 'BBB' on a standalone basis. This latest issuance, which is the third from the program, is for $175 million, has an eight year final maturity and will increase the program size to $825 million from $650 million. The outstanding balance of the program as of May 7, 2004 is $813 million. The combined issuances are from a single program and share rights to cash flows on a pari passu [Latin, By an equal progress; equably; ratably; without preference.] Used especially to describe creditors who, in marshalling assets, are entitled to receive out of the same fund without any precedence over each other. PARI PASSU. By the same gradation. basis. Fitch further affirms the 'AAA' rating for the 2002 series with an underlying rating of 'BBB,' as well as the 'BBB' rating for the 2003 series. For a complete understanding of Fitch's analysis of the Aracruz export receivables securitization corporate and structured transaction reports are available on Fitch's website at 'www.fitchratings.com'. |
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