Fitch Rts Rumson 2006-1 (Ser 37) Tranche A1-L Secured Ltd. Recourse Credit-Linked Notes Due 2011.NEW YORK -- Fitch assigns a rating to the Rumson 2006-1 (Series 37) floating rate notes issued by Rutland Rated Investments (closed on Dec. 28, 2006), a company incorporated in the Cayman Islands (the issuer) as follows: --US$35,000,000 Rumson 2006-1 (Series 37) Tranche A1-L secured limited recourse credit-linked notes due 2011, 'AAA'. Rumson 2006-1 (Series 37) is a static synthetic collateralized debt obligation Synthetic Collateralized Debt Obligation An artificial collateralized debt obligation that is backed by a pool of credit derivatives. Notes: Rather than the traditional pools of assets such as bonds and loans, the pools of credit derivatives that back synthetic CDOs (CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ) transaction that references the EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 5 billion diversified portfolio of 200 primarily investment grade corporate bonds. The transaction is designed to provide credit protection for realized losses on the reference portfolio through a credit default swap 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. (CDS) between the issuer and the swap counterparty, Bear Stearns Credit Products Inc. (the counterparty). The counterparty obligations are guaranteed by The Bear Stearns Companies Inc. (parent company rated 'A+/F1+'). The legal maturity date of the CDS is December 20, 2011. Rutland Rated Investments will issue notes, and use the $35 million in proceeds to enter into a swap agreement pertaining to class A1-L. The value of the principal of the notes is protected through the Collateralized Investment Agreement from FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) Capital Management Services LLC backed by a financial guarantee insurance policy issued by Financial Security Assurance Inc. The notes are rated to the timely payment of interest and the ultimate payment of principal at maturity. The rating is based on the credit quality of the reference portfolio, the credit enhancement provided by subordination for the tranche, the strength of the counterparties, and the transaction's sound financial and legal structure. Fitch will monitor the performance of this transaction. 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.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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