New York, December 07, 2012 -- Moody's Investors Service announced today that it has downgraded the ratings
of the following structured notes:
Deal Name: Auction Pass-Through Trust 2006-5
Tranche Name: $120,000,000 Class A Certificates,
Downgraded to Baa1 (sf); previously on September 21, 2012 A3
(sf) Placed Under Review for Possible Downgrade;
Tranche Name: $30,000,000 Class B Certificates,
Downgraded to Baa1 (sf); previously on September 21, 2012 A3
(sf) Placed Under Review for Possible Downgrade.
Deal Name: Auction Pass-Through Trust 2006-6
Tranche Name: $120,000,000 Class A Certificates,
Downgraded to Baa1 (sf); previously on September 21, 2012 A3
(sf) Placed Under Review for Possible Downgrade;
Tranche Name: $30,000,000 Class B Certificates,
Downgraded to Baa1 (sf); previously on September 21, 2012 A3
(sf) Placed Under Review for Possible Downgrade.
RATINGS RATIONALE
The transactions are structured notes whose ratings are based on the rating
of the Underlying Securities and the legal structure of the transaction.
Today's rating actions are a result of the change of the rating of the
Underlying Securities which are the U.S. Bancorp Non-Cum
Pfd. Stk. Ser. 4, issued by U.S.
Bancorp, whose rating was downgraded by Moody's to Baa1 (hyb) on
December 6, 2012.
The principal methodology used in these ratings was "Moody's Approach
to Rating Repackaged Securities" published in April 2010. Please
see the Credit Policy page on www.moodys.com for a copy
of this methodology.
Further information on Moody's analysis of this transaction is available
on www.moodys.com.
Moody's conducted no additional cash flow analysis or stress scenarios
because the ratings are a pass-through of the rating of the Underlying
Security.
Moody's says that the Underlying Securities are subject to a high level
of macroeconomic uncertainty, which is manifest in uncertain credit
conditions across the general economy. Because these conditions
could negatively affect the ratings on the Underlying Securities ,
they could also negatively impact the ratings on the note.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are endorsed by Moody's
Investors Service Ltd., One Canada Square, Canary Wharf,
London E 14 5FA, UK, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Information source used to prepare each of the ratings is the following:
public information.
Moody's did not receive or take into account a third party assessment
on the due diligence performed regarding the underlying assets or financial
instruments related to the monitoring of these transactions in the past
six months.
Moody's considers the quality of information available on the rated
entities, obligations or credits satisfactory for the purposes of
issuing these ratings.
Moody's adopts all necessary measures so that the information it
uses in assigning the ratings 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 the ratings disclosure page on www.moodys.com
for general disclosure on potential conflicts of interests.
Please see the ratings disclosure page on www.moodys.com
for information on (A) MCO's major shareholders (above 5%) and
for (B) further information regarding certain affiliations that may exist
between directors of MCO and rated entities as well as (C) the names of
entities that hold ratings from MIS that have also publicly reported to
the SEC an ownership interest in MCO of more than 5%. A
member of the board of directors of this rated entity may also be a member
of the board of directors of a shareholder of Moody's Corporation;
however, Moody's has not independently verified this matter.
Please see Moody's Rating Symbols and Definitions on the Rating Process
page on www.moodys.com for further information on the meaning
of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history.
The date on which some ratings were first released goes back to a time
before Moody's ratings were fully digitized and accurate data may not
be available. Consequently, Moody's 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 www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Oswald Espinoza
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Rodrigo Araya
Senior Vice President
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's downgrades ratings of structured notes with exposure to U.S. Bancorp