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Global Credit Research - 27 Oct 2010
New York, October 27, 2010 -- Moody's has downgraded the long-term portion of the ratings
assigned to the Morgan Stanley & Co. Inc. (Municipal
Deriv.) FR/RI Certificates, Series 2006-2234.
RATINGS RATIONALE
The rating actions are based on the downgrade of the underlying bonds
held in the trust which provides the cash flow for the payment of principal
and interest on the trust certificates. The short term portion
of the rating on the trust certificates is based upon (i) the short-term
rating of the liquidity provider; (ii) the long-term rating
of the underlying bond and (iii) the likelihood of an early termination
of the liquidity facility without a final mandatory tender. Events
that would cause the liquidity facility to terminate without a mandatory
purchase of the certificates are directly related to the credit quality
of the underlying bond. Therefore, the short-term
rating will be changed whenever the rating of the liquidity provider changes
and may be changed if the long-term rating of the underlying bond
changes.
Morgan Stanley & Co. Inc. (Municipal Deriv.)
FR/RI Certificates, Series 2006-2234
- The long term rating has been downgraded to A1 from Aa3.
What could change the rating-UP
Long Term: The long-term rating on the trust certificates
could be raised if the rating on the underlying bond was upgraded.
Short Term: Not Applicable
What could change the rating-DOWN
Long Term: The long-term rating on the trust certificates
could be lowered if the rating on the underlying bond was downgraded.
Short Term: The short-term rating on the trust certificates
could be lowered if the short-term other senior obligation (OSO)
rating of the liquidity facility provider was downgraded or if the rating
on the underlying bond was downgraded.
Methodology
The principal methodology used in rating this issue was Tender Option
Bonds Programs rating methodology published in September 2005.
Other methodologies and factors that may have been considered in the process
of rating this issuer can also be found on Moody's website.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following:
parties involved in the ratings and public information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of maintaining
a credit rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
New York
Randy Matlosz
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Joann Hempel
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
MOODY'S HAS DOWNGRADED THE LONG-TERM PORTION OF RATINGS ASSIGNED TO THE MORGAN STANLEY & CO. INC. (MUNI. DERIV.) FR/RI CERTIFICATES, SERIES 2006-2234
No Related Data.
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