Fitch to Confirm Evergreen Multi-Sector Income Fund Auction Market Pfd Shares at 'AAA'.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. expects to confirm the 'AAA' ratings for Evergreen Multi-Sector Income Fund's (AMEX AMEX See: American Stock Exchange : ERC (database) ERC - An extended entity-relationship model. ) auction market preferred shares (AMPS) series M7, T28, W7, Th28 and F7 upon completion of the fund's announced reduction in total leverage, and change in capital structure. Overall, leverage will decline and the fund will partially replace existing debt financing with leverage provided by reverse repurchase transactions. Following the restructuring, debt and reverse repurchase agreements together will total $155,000,000 while outstanding ARPS ARPS See: Adjustable-rate preferred stock ARPS See: Auction rate preferred stock will remain $80,000,000. These changes are expected to be completed by March 24, 2009. The confirmation is based on Fitch's analysis of the Fund's underlying portfolio provides preferred stock liquidation coverage, as well as the quality and experience of the Fund's investment manager, Evergreen Investment Management Company, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control who as of Dec. 31, 2008 managed more than $175 billion in assets. At the time of Fitch's review, the Fund's proforma AMPS coverage ratios calculated in accordance with the Fitch Basic Maintenance Amount Test satisfied a minimum coverage ratio of at least 100%. Additionally, the Fund's pro-forma AMPS coverage ratios calculated in accordance with the requirements of the 1940 Act as amended satisfied regulatory requirements mandating an asset coverage ratio Asset Coverage Ratio A test that determines a company's ability to cover debt obligations with its assets after all liabilities have been satisfied. It is calculated as the following: of at least 300% for debt financing and an asset coverage ratio of at least 200% for a combination of AMPS and debt financing. Fitch calculates the Fund's total pro-forma leverage is approximately 32% of assets as of March 19, 2009. The fund seeks to achieve a high level of current income and diversification through investments in various fixed income securities. The fund's portfolio assets are allocated among securities consisting of below investment grade (high yield) U.S. debt securities, loans and preferred stocks, investment grade foreign debt securities, and adjustable rate mortgage-backed securities issued by the U.S. government, its agencies and instrumentalities. Fitch's process for rating senior securities issued by closed-end funds is described in detail in its March 3, 2006 report, 'Closed-End Fund Debt and Preferred Stock Rating Criteria'. On Sept. 3, 2008 Fitch formally began a review of its closed-end fund rating criteria following a broader, coordinated initiative to update Fitch's methodologies for all market value structures. The criteria report and the press release ('Fitch Reviews Closed-End Fund Criteria') are both available on the Fitch Ratings web site at www.fitchratings.com. 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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