S&P Affrms/Lwrs Rtgs on Aust RMBS Fllwng RSALMI Dwngr.Business Editors MELBOURNE Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. , Australia--(BUSINESS WIRE)--June 3, 2003 Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today lowered the ratings on certain tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". of Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities with exposure to Royal & Sun Alliance Lenders Mortgage Insurance Lenders mortgage insurance (LMI), also known as private mortgage insurance (PMI), is insurance payable to a lender that may be required when taking out a mortgage loan. Ltd. (RSALMI) to 'A-' from 'AA-', and removed them from CreditWatch Developing, where they were placed on Nov. 8, 2002. At the same time, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the 'AA-' ratings on certain tranches of Australian RMBS with exposure to RSALMI, and also removed them from CreditWatch Developing (see list). The ratings actions follow the financial strength and counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit ratings on RSALMI being lowered to 'A-' from 'A+' on May 22, 2003, and confirmation from RSALMI that the reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. arrangements it entered into to maintain an 'AA-' rating on subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. tranches of RMBS with exposure to RSALMI would not be extended beyond the expiry date expiry date expire n → date f d'expiration; (on label) → à utiliser avant ... expiry date expire n → Ablauftermin m of June June: see month. 3, 2003. Standard & Poor's has reviewed all Australian RMBS transactions with exposure to RSALMI to determine the impact of the RSALMI downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. . Following this review, there has been no effect on the ratings on the senior tranches of Australian RMBS with exposure to RSALMI. For the subordinated tranches of the affected RMBS transactions, Standard & Poor's has recalculated the level of credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing required to support the 'AA-' ratings. In doing so, Standard & Poor's has given the 'A-' rated RSALMI policies 75% credit at the 'AA-' rating level. Where the level of additional credit support required to compensate for the decline in RSALMI's rating is less than 25bps, Standard & Poor's has affirmed the 'AA-' rating on the basis that excess spread flowing through the transaction will be sufficient to cover this amount. Where the level of additional support required is more than 25bps, and where issuers have provided further credit enhancement, Standard & Poor's has affirmed the ratings on the subordinated tranches; where issuers have failed to provide further credit enhancement, Standard & Poor's has lowered the ratings on the subordinated tranches.
RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH DEVELOPING
Transaction Rating
ARMS II Euro Fund I class B bonds AA-
ARMS II Euro Fund II class B bonds AA-
ARMS II Euro Fund IV tranche 3 bonds AA-
ARMS II Euro Fund V class B bonds AA-
ARMS II Fund III tranche 2 bonds AA-
ARMS II Fund VI tranche 3 bonds AA-
ARMS II Fund VIII tranche 3 bonds AA-
ARMS II Fund XII class B bonds AA-
Banksia Series 2 Trust class B bonds AA-
Banksia Trust Series 2001-1 class B notes AA-
Interstar Millennium Series 1999-1 Trust class B notes AA-
Interstar Millennium Series 2000-1 Trust class B notes AA-
Interstar Millennium Series 2000-2 Trust class B notes AA-
Interstar Millennium Series 2000-3E Trust class B notes AA-
Interstar Millennium Series 2000-4P Trust class B notes AA-
Interstar Millennium Series 2000-5 Trust class B notes AA-
Interstar Millennium Series 2001-1C Trust class B notes AA-
Interstar Millennium Series 2001-1E Trust class B notes AA-
Interstar Millennium Series 2001-2 Trust class B notes AA-
Interstar Millennium Series 2001-3 Trust class B notes AA-
Interstar Millennium Series 2002-1G Trust class B notes AA-
Interstar Millennium Series 2002-2 Trust class B notes AA-
Interstar Millennium Series 2003-1G Trust class B notes AA-
Kingfisher Trust No. 1 class B notes AA-
Kingfisher Trust No. 2 class B notes AA-
PUMA Global Trust No. 1 class B notes AA-
PUMA Global Trust No. 2 class B notes AA-
PUMA Masterfund E-2 series 1B certificates AA-
PUMA Masterfund E-3 series 1B and 2B certificates AA-
PUMA Masterfund P-5 series A and B subordinated bonds AA-
PUMA Masterfund P-6 series A and B subordinated bonds AA-
PUMA Masterfund P-7 series A subordinated bonds AA-
RESIMAC 2001-1 Trust class B notes AA-
RAMS Mortgage Corp. Ltd. Series 1 class B bonds AA-
RAMS Mortgage Corp. Ltd. Series 5E class B notes AA-
Securitised Australian Mortgage Trust 1996-1 class B units AA-
Securitised Australian Mortgage Trust 1997-1 class B units AA-
Securitised Australian Mortgage Trust 1997-2 class B units AA-
Securitised Australian Mortgage Trust 1998-1 class B units AA-
Series 1997-1 WST Trust class 2 notes AA-
Series 1997-2 WST Trust class B notes AA-
Series 1997-3 WST Trust class B notes AA-
Series 1997-4E WST Trust class B notes AA-
Series 1998-1G WST Trust class B notes AA-
Series 1999-1G WST Trust class B notes AA-
Series 2002-1G WST Trust class B notes AA-
Series 2001-1 TORRENS Trust class B notes AA-
Series 2002-1 TORRENS Trust class B notes AA-
RATINGS LOWERED AND REMOVED FROM CREDITWATCH DEVELOPING
Transaction Rating
To From
RAMS Mortgage Corp. Ltd. Series 6E class B notes A- AA-
RAMS Mortgage Corp. Ltd. Series 7E class B notes A- AA-
RAMS Mortgage Corp. Ltd. Series 8 class B notes A- AA-
RAMS Mortgage Corp. Ltd. Series 9 class B notes A- AA-
RAMS Mortgage Corp. Ltd. Series 10 class B notes A- AA-
RAMS Mortgage Corp. Ltd. Series 11 class B bonds A- AA-
RMS Trust 2002-1 class B bonds A- AA-
Copyright 2003, Standard & Poor's Ratings Services |
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