Fitch Withdraws Ratings on CMBSpoke 2005-III, Ltd.NEW YORK -- Fitch Ratings withdraws the ratings on all classes of notes issued by CMBSpoke 2005-III, Ltd. (CMBSpoke 2005-III). The following actions are effective immediately: --$66,666,667 class A rated 'AAA'; --$16,666,667 class B rated 'AA-'; --$50,000,000 class C rated 'BBB'. CMBSpoke 2005-III 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 that references a $3.3 billion portfolio of 100 commercial mortgage backed securities assets. The transaction provides 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, Morgan Stanley Capital Services Inc. (rated 'F1/A' by Fitch). The proceeds from the above-referenced notes were placed into a guaranteed investment contract Guaranteed investment contract (GIC) A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. (GIC GIC See: Guaranteed Investment Contract GIC See guaranteed investment contract (GIC). ) with MBIA Inc. (MBIA). Upon MBIA's downgrade, collateral was posted. The posted assets currently consist of various asset-backed securities, including over 50% in Residential Mortgage Backed Securities. In the event of a credit event, collateral would be liquidated at the then prevailing market price to cover any losses. MBIA is responsible for covering any market value losses upon the liquidation of the collateral. As Fitch no longer rates MBIA, Fitch does not have an opinion on MBIA's ability to fulfill its credit obligations. As such, Fitch can no longer maintain the ratings on the above-referenced notes. 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.fitchratings.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. |
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