S&P Asgns Prelim Rtgs in DSB Group's First RMBS Deal.Business Editors LONDON--(BUSINESS WIRE)--Sept. 19, 2003 Standard & Poor's--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. said today that it assigned its preliminary credit ratings to 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. 796.5 million secured mortgage-backed floating-rate notes Floating-rate note (FRN) Note whose interest payment varies with short-term interest rates. floating-rate note An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a to be issued by Monastery 2003-I B.V., an SPE SPE - Software Practice and Experience (see list below). The collateral backing the notes is made up of a pool of loans secured by first-ranking mortgages over residential properties situated in The Netherlands. The pool is made up of interest-only mortgage loans, annuity mortgage loans, and life mortgage loans, or a combination of these. The loans have been originated since 2000 by the DSB DSB Dispute Settlement Body (World Trade Organization) DSB Double Strand Break DSB Defense Science Board (US DoD) DSB Deep Sand Bed DSB Deutscher Sportbund Groep N.V. and its group companies (DSB Group), which is a niche player concentrating on the Dutch consumer markets for borrowing, savings, and insurance products. The preliminary ratings reflect the sound payment structure and cash flow mechanics of the transaction, and a cash flow analysis to verify that the notes will be repaid under stress test scenarios A set of test cases that ensure that the business process flows are tested from end to end. They may be independent tests or a series of tests that follow each other, each dependent on the output of the previous one. The terms "test scenario" and "test case" are often used synonymously. . Another key consideration in the rating analysis is the strong protection for noteholders provided by a combination of subordination, a liquidity facility, a reserve fund, and excess spread to cover credit losses, income shortfalls, and to create overcollateralization. A unique feature of this transaction relates to the fact that Dutch RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities contain an element of setoff setoff (offset) n. a claim by a defendant in a lawsuit that the plaintiff (party filing the original suit) owes the defendant money which should be subtracted from the amount of damages claimed by plaintiff. risk. Borrowers in The Netherlands with interest-only mortgages may take out an insurance policy to repay the mortgage at maturity. If the insurer becomes insolvent there is a risk that the borrower may be able to offset amounts owed under the mortgage against amounts owed under the policy. "In this transaction, 39% of the mortgages have the benefit of an insurance policy but Standard & Poor's has been able to delink the risk of insolvency of the insurance company from Monastery 2003-I," said Kevin De Baere, credit analyst at Standard & Poor's Structured Finance Ratings group in London. The full presale report for this transaction was published today and is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The presale report can also be found on Standard & Poor's Web site at www.standardandpoors.com. Click on Credit Ratings; then, in the left navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. under Browse by Business Line, select Structured Finance; scroll down to Presale Credit Reports to locate the article. Alternatively, call one of Standard & Poor's Ratings Desks: London (44) 20-7847-7400; Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or Stockholm (46) 8-440-5916. Members of the media may contact the Press Office Hotline on (44) 20-7826-3605 or via media_europe@standardandpoors.com.
RATINGS LIST
Monastery 2003-I B.V.
EUR796.5 Million Secured Floating-Rate Notes
Class Preliminary Preliminary
Rating Amount (Mil. EUR)
A AAA 741.5
B AA 15.0
C A 21.5
D BBB 9.5
E BB 9.0
ANALYST E-MAIL ADDRESSES kevin_debaere@standardandpoors.com brian_kane@standardandpoors.com StructuredFinanceEurope@standardandpoors.com Copyright 2003, Standard & Poor's Ratings Services |
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