RPT-Fitch Affirms Da Vinci Synthetic's Notes

Fri Aug 2, 2013 6:32am EDT

Fitch Ratings has affirmed Da Vinci Synthetic plc's notes, as follows: EUR19.69m Class B: affirmed at 'CCCsf'; Recovery Estimate 90%. EUR7.74m Class C: affirmed at 'Dsf'; Recovery Estimate 0%

The affirmation is based on the current composition of the reference claims and that no credit events have occurred in the past 12 months. Only one credit event has occurred since the transaction closed. Fitch believes that the operating environment for the aviation sector is challenging, in particular for the European flagship carriers. This transaction is exposed to concentration risk as the current portfolio contains 14 reference claims involving six airlines in six countries.

The top two airlines represent 48.6% of the total notional amount outstanding. Nine obligations, representing 79% of the reference portfolio, are due to be repaid within the next two years.

If a credit event occurs and is called on two obligors, the class B notes could experience a default. Non-payments of more obligors could result in a downwards revision of the recovery estimate. If no credit event occurs in the next year and the reference obligation continues to reduce, this may result in positive rating action.

The transaction is a synthetic securitisation of a portfolio of financial leases and loans secured on aircrafts and associated aircraft collateral. Merrill Lynch International Bank entered into a credit default swap with Intesa Sanpaolo under which it sells protection on a reference portfolio of up to USD650m. All financial leases or loan obligations (the reference portfolio) relate to the financing or refinancing of aircrafts.

Anda sedang membaca artikel tentang

RPT-Fitch Affirms Da Vinci Synthetic's Notes

Dengan url

http://sarapannasiudak.blogspot.com/2013/08/rpt-fitch-affirms-da-vinci-synthetics.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

RPT-Fitch Affirms Da Vinci Synthetic's Notes

namun jangan lupa untuk meletakkan link

RPT-Fitch Affirms Da Vinci Synthetic's Notes

sebagai sumbernya