info

Yes No
Global Header | Moody's
ABOUT US
REGULATORY AFFAIRS
CAREERS
Terms of Use
CONTACT US
HOME
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's places six German SME CDOs under review for downgrade

29 Apr 2010

Approximately EUR1.66 billion of debt securities affected

London, 29 April 2010 -- Moody's Investors Service has placed on review for possible downgrade the ratings of 25 Notes issued by six collateralized debt obligation (CDO) transactions backed by non-granular portfolios of German Small and Medium Enterprise loans (SME CDOs).

Today's rating actions are as follows:

Issuer: European Private Funding I Limited Partnership (Preps 2004-1)

EUR220M (Currently EUR180.8M) Senior Notes, Baa1 Placed Under Review for Possible Downgrade; previously on May 7, 2009 Downgraded to Baa1

Issuer: PREPS 2005-1 Limited Partnership

EUR175M (Currently EUR145.7M) A1, Aa1 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Aa1

EUR60M (Currently EUR49.9M) A2, Aa1 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Aa1

EUR47M B, Ba1 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Ba1

Issuer: PREPS 2005-2 plc

EUR217M (Currently EUR189.2M) A1, A3 Placed Under Review for Possible Downgrade; previously on May 7, 2009 Downgraded to A3

EUR53M (Currently EUR46.2M) A2, A3 Placed Under Review for Possible Downgrade; previously on May 7, 2009 Downgraded to A3

EUR41.5M B1, Caa2 Placed Under Review for Possible Downgrade; previously on May 7, 2009 Downgraded to Caa2

EUR12.5M B2, Caa2 Placed Under Review for Possible Downgrade; previously on May 7, 2009 Downgraded to Caa2

Issuer: H.E.A.T Mezzanine S.A. - Compartment 3 Notes

EUR233M (Currently EUR217.8M) A, A2 Placed Under Review for Possible Downgrade; previously on Oct 15, 2009 Downgraded to A2

EUR31M B, B2 Placed Under Review for Possible Downgrade; previously on Oct 15, 2009 Downgraded to B2

EUR25.5M C, Caa3 Placed Under Review for Possible Downgrade; previously on Oct 15, 2009 Downgraded to Caa3

Issuer: PULS CDO 2006-1 PLC

EUR39.1M (Currently EUR31.4M) A1, A1 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to A1

EUR24M A2B, Baa1 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Baa1

EUR26.5M B, Ba3 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Ba3

EUR21.1M C1, Caa1 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Caa1

EUR5.7M C2, Caa3 Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Caa3

EUR14.6M (Currently EUR15.2M) D, Ca Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Ca

EUR8.35M (Currently EUR9.2M) E1, Ca Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Ca

EUR2.85M (Currently EUR3.2M) E2, Ca Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Ca

EUR6M ComboP, Ca Placed Under Review for Possible Downgrade; previously on Jun 17, 2009 Downgraded to Ca

Issuer: Entry Funding No.1 plc

EUR358.5M (Currently EUR204.8M) A, Baa3 Placed Under Review for Possible Downgrade; previously on Aug 10, 2009 Downgraded to Baa3

EUR8M B, Caa1 Placed Under Review for Possible Downgrade; previously on Aug 10, 2009 Downgraded to Caa1

EUR8M C, Caa3 Placed Under Review for Possible Downgrade; previously on Aug 10, 2009 Downgraded to Caa3

EUR10M D, Ca Placed Under Review for Possible Downgrade; previously on Aug 10, 2009 Downgraded to Ca

EUR11M E, Ca Placed Under Review for Possible Downgrade; previously on Aug 10, 2009 Downgraded to Ca

Today's rating actions are the result of worse than anticipated credit deterioration affecting the underlying pools of these six German SME transactions. This is primarily reflected by higher default rates than envisaged when these deals were last monitored as further detailed below. To the extent available in a transaction, Moody's also considers as a key metric the increase in the Principal Deficiency Ledger (PDL). PDL is a measure representing the cumulative nominal amount of defaults in a transaction cured by the redemption of the senior note from excess spread proceeds. An increase in PDL highlights that the positive effect of excess spread diversion mechanisms designed to protect most senior tranches in the transaction is outbalanced by rate of defaults in a given portfolio. This therefore implies lower collateralization levels for all tranches. As most of these deals are highly concentrated (typically less than 60 obligors in each pool), ratings show an increased sensitivity to changes in collateralization levels.

Moody's expects to resolve its review in the coming weeks following further deal specific analysis.

European Private Funding I Limited Partnership (Preps 2004-1) has experienced further credit deterioration since last rating action on 7 May 2009, illustrated among others by the missed interest payment of a loan of EUR 10 million accounting for 4.7% of the outstanding portfolio pool.

Preps 2005-1 Limited Partnership has seen an increase in the PDL from zero to EUR 15.0 million (5.6% of the pool) between the February 2009 investor report and latest reporting date.

Preps 2005-2 plc has suffered further defaults causing the PDL to increase to EUR 52.0 million (18.4% of the pool) as given in the report dated March 2010 from EUR 32.9 million (10.5% of the pool) in the report used at last monitoring report dated March 2009. In addition, two credits accounting for EUR 24 million or 8.5% of the outstanding portfolio have recently missed interest payments suggesting further defaults are likely.

H.E.A.T Mezzanine S.A. - Compartment 3 Notes has seen an increase in the PDL to EUR 58.3 million (24.0% of the pool) as of the April 2010 report from EUR 27.3 million (10.4% of the pool) in the report dated October 2009.

PULS CDO 2006-1 PLC, which references some senior unsecured in addition to subordinated bonds, has seen an increase in its PDL to EUR 36.1 million (18.7% of the pool) in the January 2010 report from EUR 25.8 million (12.1% of the pool) as of the April 2009 report.

Entry Funding, which is exposed to a relatively more granular portfolio made of senior unsecured loans from 185 issuers, has experienced an increase in the PDL to EUR 31.1 million (14.99% of the pool) on March 2010 from EUR 20.8 million (8.2% of the pool) on June 2009 and an increase in delinquencies over the same period.

Today's watchlisting does not indicate an increased pessimism regarding the German SME sector as a whole but rather reflects worse than expected performance of the above listed transactions. Despite early signs of stabilization in the German SME loan market, Moody's outlook on German SMEs continues to be negative in H01 2010, as a result of persisting liquidity concerns for small and medium businesses in the context of a sluggish economic recovery in Germany. Moody's expects that the default rate for the SME sector in 2010 will be comparable to that of 2009.

Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's Special Reports and press releases below:

--Moody's Approach to Rating Corporate Collateralized Synthetic Obligations (March 2009)

--Moody's Approach to Rating CDOs of SMEs in Europe (February 2007)

These reports can be found at www.moodys.com in the Research and Ratings directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating these issuances can also be found in the Ratings Methodologies subdirectory. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

London
Greg O''Reilly
Associate Analyst
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Paris
Florence Tadjeddine
VP - Senior Credit Officer
Structured Finance Group
Moody's France S.A.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's places six German SME CDOs under review for downgrade
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. 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 or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Global Footer | Moody's