Fitch Revises Outlook for Pisces Finance Limited 2006-2; Affirms Rating
--CLP2,700,000,000 credit-linked notes at 'BB+sf'; Outlook revised to Negative from Stable.
KEY RATING DRIVERS
The rating action follows Fitch's revision of the Outlook for the reference entity, CAP S.A. Fitch monitors the performance of the underlying risk-presenting entities and adjusts the rating accordingly through application of its current credit-linked note (CLN) criteria, 'Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes' dated March 9, 2015.
The rating considers the credit quality of CAP S.A.'s current Issuer Default Rating (IDR) of 'BBB' with a Negative Outlook and Goldman Sachs Group, Inc. (rated 'A', Outlook Stable) as the swap counterparty and issuer of the qualified investment. The Rating Outlook reflects the Outlook on the main risk driver, CAP S.A., which is the lowest-rated risk-presenting entity.
RATING SENSITIVITIES
The rating remains sensitive to rating migration of each risk-presenting entity. A downgrade of CAP S.A. would likely result in a downgrade to the notes.
Pisces 2006-2 is a static CDO transaction designed to provide credit protection on a portfolio referencing USD5,018,120.99 of Cap S.A. senior unsecured bonds. This protection is arranged through a Credit Default Swap between the issuer and the swap counterparty, Goldman Sachs Capital Markets, L.P.
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