S&P Lwrs Rtg on Riviera Finance 2's B Nts; A, C Afmd.Business Editors LONDON--(BUSINESS WIRE)--Sept. 16, 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 it lowered its credit rating on the class B floating-rate notes issued by Riviera Finance 2 S.A., an SPE SPE - Software Practice and Experience . At the same time, the ratings on the class A and C notes were affirmed (see list below). The rating action follows continued negative credit migration in the reference portfolio, which has raised scenario loss rates at all levels. Previous downward movement of the pool caused the class C notes to be downgraded in mid July to 'BBB-' from 'BBB+'. By aggregate notional, 14% of the portfolio now consists of non-investment-grade names. Riviera Finance 2 is a synthetic CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the originated by BNP Paribas BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. . The collateral backing the notes comprises 'AAA' rated ABS (as long as the repo Repo An agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price. See: Repurchase agreement. repo See repurchase agreement (RP). counterparty remains rated 'A-1+'), 'AAA' rated Pfandbriefe, or securities rated 'AA+' or better issued by the Kingdom of Belgium, the Republic of France, or the Federal Republic of Germany. The transaction has suffered no defaults during its life. The rating on the notes will continue to reflect the credit support available in the form of the threshold, the credit risk of the reference portfolio, and the mechanics of the 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. .
RATINGS LIST
Class Rating
To From
Riviera Finance 2 S.A.
EUR79 Million Credit-Linked Floating-Rate Notes
Rating Lowered
B A+ AA
Ratings Affirmed
A AAA
C BBB-
ANALYST E-MAIL ADDRESSES
suresh_hegde@standardandpoors.com
lapo_guadagnuolo@standardandpoors.com
StructuredFinanceEurope@standardandpoors.com
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