Bangkok--18 Oct--Moody's
Moody's Investors Service announced today that it has downgraded the rating on TIGERS Credit-Linked Notes, Series
2005-5 issued by Starts (Cayman) Limited. The rating action concludes the review for possible downgrade of the rating on the notes announced on 20 July 2006.
The complete rating action is as follows:Issuer: Starts (Cayman) Limited
Tranche Description: AUD 70,000,000 Credit-Linked Notes due 22 June 2013
Prior Rating: A1, on watch for possible downgrade
Current Rating: A2
The review in July was prompted by a deterioration in the reference portfolio's credit quality. The review was concluded on the finalization of the transaction's restructuring where the static transaction has been changed to a managed transaction with the addition of Lion Capital Management Limited as portfolio manager and with 12 substitutions implemented to the portfolio. The portfolio currently has 101 reference entities and the threshold percentage was adjusted from 6.5% to 5.7%.
Although the substitutions improved the weighted average credit quality of the portfolio since July, it has not been sufficient to maintain the A1 ratings. The portfolio's weighted average 10-year rating factor is currently 347, while it was 257 on closing date and 440 right before the restructuring.
The transactions will continue to be monitored and any further rating action will be publicly disseminated.
Moody's Investors Service is a publisher of rating opinions and research.
It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold or sell securities.
Hong Kong
Min Ye
Managing Director
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 2916-1121
Hong Kong
Myrna Fajardo
VP - Senior Credit Officer
Structured Finance Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 2916-1121