Fitch Affirms MARC Finance M629 Notes at 'BBB+sf'; Outlook Stable
OREANDA-NEWS. Fitch Ratings has affirmed MARC Finance Ltd.'s Series M629 repackaged notes as below. The Rating Outlook remains Stable. The notes are backed by single-name collateral securities with a currency swap.
JPY5bn* Series M629 repackaged notes due 2021 affirmed at 'BBB+sf'; Outlook Stable
*as of 19 February 2016
KEY RATING DRIVERS
The rating reflects the first-to-default risk of the collateral, a subordinated bond issued by a financial institution (A-), and the swap counterparty, BNP Paribas (A+/Stable), London branch.
The notes have been affirmed as there have been no changes to the ratings of the collateral and Long-Term Issuer Default Rating of the swap counterparty since the previous rating action in February 2015. The Stable Outlook is based on Fitch's expectation on the creditworthiness of the two risk-presenting entities.
RATING SENSITIVITIES
The rating is sensitive to rating migration of the two risk-presenting entities. Based on the applicable criteria, a one-notch downgrade of the collateral securities would result in a one-notch downgrade of the notes, while a one-notch downgrade of the swap counterparty would not affect the rating on the notes. A one-notch upgrade of either party would lead to a one-notch upgrade of the notes. This sensitivity only describes the matrix-implied rating impact and it should not be used as an indicator of possible future performance.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
DATA ADEQUACY
The collateral securities have a rating from Fitch. Fitch has relied on the practices of the relevant Fitch groups to assess the collateral information.
Overall, Fitch's assessment of the collateral information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.
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