Fulton Street CBO Rated 'AAA/AA/BBB/BB' By Fitch Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--March 27, 2002 Fulton Street Fulton Street is a common name.. In New York City, the name is frequently associated with Robert Fulton, who invented a steam boat.
See: Collateralized Bond Obligation. , Ltd.'s and its co-issuer Fulton Street CBO Inc.'s (collectively referred to as the co-issuers) $180 million class A-1A floating-rate notes and $148 million class A-1B floating-rate notes are rated 'AAA' by 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. . In addition, Fitch rates $34 million class A-2 floating-rate notes 'AA'; $9 million class B-1 fixed-rate notes and $10 million class B-2 floating-rate notes 'BBB'; and $7 million class C fixed-rate notes 'BB'. The ratings on the class A-1A, A-1B and A-2 notes address the timely payment of interest and principal; the ratings on the class B-1, B-2 and C notes address the ultimate payment of interest and principal. The class A-1A and A-1B notes have a legal final maturity of April 2032; the class A-2, B-1, B-2, and C notes have a legal final maturity of April 2037. The ratings are based upon the capital structure of the transaction, the quality of the collateral, and the overcollateralization and interest coverage tests provided for within the security agreement. Additionally, the ratings address the experience and capabilities of Clinton Group (Clinton) as the collateral manager. The proceeds of the notes will be used to purchase an investment portfolio consisting primarily of residential mortgage-backed securities (RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities ), commercial mortgage-backed securities (CMBS CMBS See: Commercial Mortgage Backed Securities ), asset-backed securities (ABS), corporate debt securities, and collateralized debt obligations Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDOs). Upon the breach of a coverage test as outlined in the security agreement, the notes will start the process of paying down principal sequentially beginning with class A principal. The investment manager, Clinton, will purchase all investments for the portfolio on behalf of the co-issuers, which are special purpose companies incorporated under the laws of the 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. and Delaware, respectively. As of January 2002, Clinton managed over $5 billion in assets worldwide, including two CDOs backed by structured products. For more information, please refer to the deal report titled 'Fulton Street CBO', which is available on Fitch Ratings' web site at 'www.fitchratings.com'. |
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