New York, March 25, 2011 -- Moody's Investors Service ("Moody's") announced today that it has taken
action on, and published the ratings of, the following debt
tranches issued by four certified capital companies, commonly referred
to as "CAPCOs":
Issuer: Advantage Capital Alabama Partners I, L.P.
US$ 8,169,154.35 Guaranteed Notes due 2019;
upgraded to Aaa, previously on November 12, 2009 confirmed
at Aa3
Issuer: Texas ACP I, L.P.
US$ 9,753,684 Guaranteed Notes due 2020; upgraded
to Aaa, previously on November 12, 2009 confirmed at Aa3
Issuer: Advantage Capital D.C. Partners I, L.LC.
US$ 2,928,997 Guaranteed Notes, Series A,
due 2020; upgraded to Aaa, previously on November 12,
2009 confirmed at Aa3
US$ 3,874,428 Guaranteed Notes, Series B,
due 2019; upgraded to Aaa, previously on November 12,
2009 confirmed at Aa3
Issuer: Advantage Capital Partners XI, Limited Partnership
US$ 4,313,115 Guaranteed Notes due 2017; upgraded
to Aaa, previously on November 12, 2009 confirmed at Aa3
US$ 3,981,455 Guaranteed Notes, Series B,
due 2018; upgraded to Aaa, previously on November 12,
2009 confirmed at Aa3
RATINGS RATIONALE
Moody's ratings of these CAPCO debt issuances had inadvertently
not been previously published on moodys.com. All four of
the transactions are wrapped by Assured Guaranty Municipal Corporation,
previously Financial Security Assurance, Inc. ("FSA").
Moody's initial ratings of these transactions passed through the Aaa rating
of FSA, which was current at the time of each transaction's
issuance.
FSA's rating was placed on watch for possible downgrade on July
21, 2008 and the notes for all four transactions were similarly
placed on watch for possible downgrade at that time. With FSA's
downgrade to Aa3 on November 21, 2008, Moody's downgraded
the ratings on the notes for the four transactions to Aa3. All
of the notes were placed on watch for possible downgrade again on May
20, 2009 when FSA's rating was similarly put on watch.
Moody's confirmed the Aa3 insurance financial strength rating of
Assured Guaranty Municipal Corp., as the successor to FSA,
on November 12, 2009 and thus also confirmed the ratings on all
the notes at that time.
Underlying ratings based on the credit quality of these debt issuances
(absent consideration of the financial guaranty) for all four of these
CAPCO transactions have also not been previously published. Moody's
said the rating actions today reflect the implementation to the underlying
ratings of the methodology described in "Moody's Methodology for Rating
Debt Issuances of Certified Capital Companies" (the "Updated CAPCO Methodology"),
by which Moody's provides ratings on CAPCO debt issuances independent
of credit support provided by third parties, such as financial guarantors.
As a result, Moody's is assigning the underlying ratings noted
in these ratings actions. Consistent with Moody's policy
for securities wrapped by a financial guarantor of publishing the higher
of the guarantor's rating and the current underlying rating,
the underlying rating will now be the published rating.
Under the Updated CAPCO Methodology, the rating actions reflect
that all four transactions have met their final statutory investment benchmarks
for making investments in businesses which qualify for the allocation
of premium tax credits under each of their applicable CAPCO statutes.
As a result, the tax credits allocated to each CAPCO under its respective
statute are beyond forfeiture and recapture. Each CAPCO's
remaining obligations to make payments in cash, if any, are
supported by the CAPCO's assets.
The ratings history for each of the note issuances in these transactions
is as follows:
Issuer and Notes: Advantage Capital Alabama Partners I, L.P.,
US$ 8,169,154.35 Guaranteed Notes due 2019
Assigned Aaa on February 5, 2004; placed on watch for possible
downgrade on July 21, 2008; downgraded to Aa3 on November 21,
2008; placed on watch for possible downgrade on May 20, 2009;
rating confirmed on November 12, 2009
Financial guarantor: Assured Guaranty Municipal Corporation,
formerly Financial Security Assurance, Inc.: Aa3;
previously on November 21, 2008 downgraded to Aa3 from Aaa
Underlying rating: assigned Aaa
Issuer and notes: Texas ACP I, L.P., US$
9,753,684 Guaranteed Notes due 2020;
Assigned Aaa on June 22, 2005; placed on watch for possible
downgrade on July 21, 2008; downgraded to Aa3 on November 21,
2008; placed on watch for possible downgrade on May 20, 2009;
rating confirmed on November 12, 2009
Financial guarantor: Assured Guaranty Municipal Corporation,
formerly Financial Security Assurance, Inc.: Aa3;
previously on November 21, 2008 downgraded to Aa3 from Aaa
Underlying rating: assigned Aaa
Issuer and notes: Advantage Capital D.C. Partners
I, L.LC., US$ 2,928,997 Guaranteed
Notes, Series A, due 2020
Assigned Aaa on November 19, 2004; placed on watch for possible
downgrade on July 21, 2008; downgraded to Aa3 on November 21,
2008; placed on watch for possible downgrade on May 20, 2009;
rating confirmed on November 12, 2009
Financial guarantor: Assured Guaranty Municipal Corporation,
formerly Financial Security Assurance, Inc.: Aa3;
previously on November 21, 2008 downgraded to Aa3 from Aaa
Underlying rating: assigned Aaa
Issuer and notes: Advantage Capital D.C. Partners
I, L.LC., US$ 3,874,428 Guaranteed
Notes, Series B, due 2019
Assigned Aaa on November 19, 2004; placed on watch for possible
downgrade on July 21, 2008; downgraded to Aa3 on November 21,
2008; placed on watch for possible downgrade on May 20, 2009;
rating confirmed on November 12, 2009
Financial guarantor: Assured Guaranty Municipal Corporation,
formerly Financial Security Assurance, Inc.: Aa3;
previously on November 21, 2008 downgraded to Aa3 from Aaa
Underlying rating: assigned Aaa
Issuer and notes: Advantage Capital Partners XI, Limited Partnership,
US$ 4,313,115 Guaranteed Notes due 2017
Assigned Aaa on October 16, 2002; placed on watch for possible
downgrade on July 21, 2008; downgraded to Aa3 on November 21,
2008; placed on watch for possible downgrade on May 20, 2009;
rating confirmed on November 12, 2009
Financial guarantor: Assured Guaranty Municipal Corporation,
formerly Financial Security Assurance, Inc.: Aa3;
previously on November 21, 2008 downgraded to Aa3 from Aaa
Underlying rating: assigned Aaa
Issuer and notes: Advantage Capital Partners XI, Limited Partnership,
US$ 3,981,455 Guaranteed Notes, Series B,
due 2018
Assigned Aaa on October 16, 2003; placed on watch for possible
downgrade on July 21, 2008; downgraded to Aa3 on November 21,
2008; placed on watch for possible downgrade on May 20, 2009;
rating confirmed on November 12, 2009
Financial guarantor: Assured Guaranty Municipal Corporation,
formerly Financial Security Assurance, Inc.: Aa3;
previously on November 21, 2008 downgraded to Aa3 from Aaa
Underlying rating: assigned Aaa
The principal methodology used in these ratings was Moody's Methodology
for Rating Debt Issuances of Certified Capital Companies published in
August 2009.
Other methodologies and factors that may have been considered in the process
of rating these issues can also be found in the Credit Policy & Methodologies
directory. Further information on Moody's analysis of this transaction
is available on www.moodys.com. 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.
Moody's will continue monitoring these ratings. Any change
in the ratings will be publicly disseminated by Moody's through
appropriate media.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following:
parties involved in the ratings.
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
Ruth Olson
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Rodrigo Araya
Senior Vice President
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.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's publishes ratings and history of notes issued by four CAPCOs