S&P Assigns RACERS Ser 2002-35-C Certs 'AAA' Rating.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's Sept. 30, 2002--Standard & Poor's Ratings Services today assigned its triple-'A' rating to Restructured Asset Certificates with Enhanced Returns (RACERS) Series 2002-35-C Trust's $300 million credit-linked certificates series 2002-35-C. The rating reflects the credit quality of the underlying asset, Federal National Mortgage Association's 3.625% notes due April 15, 2004 (triple-'A'); the interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. counterparty, Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Derivative Products Inc. (triple-'At'); and the reference entity, MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corp. (triple-'A' insurer financial strength rating). The rating also addresses the likelihood of the trust making payments on the certificates as required under the trust agreement. The trust will enter into an interest rate swap with Lehman Brothers Derivatives Products Inc. (LBDP) as the swap counterparty. The trust will make fixed-rate payments to LBDP in exchange for floating-rate payments. The trust will also enter into 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. with Lehman Brothers Special Financing Inc. (LBSF LBSF Local Back Surface Field LBSF Lehman Brothers Special Finance ), as guaranteed by Lehman Brothers Holdings Inc., as the swap counterparty. At closing, LBSF made one initial payment and has no further payment obligations. |
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