TEXT-Fitch affirms Signum Finance II Series 2012-03's notes;outlook revised to stable

Tue Jan 15, 2013 7:21am EST

Jan 15 - Fitch Ratings has affirmed Signum Finance II Plc Series 2012-03 notes and revised their Outlook to Stable from Negative, as follows:

USD50m Signum Finance II Series 2012-03 Notes (ISIN XS0868105494): Affirmed at 'A-sf'; Outlook revised to Stable from Negative

The notes' rating reflects the credit quality of the two risk presenting entities - as well as the issuer's legal and financial structure - and follows the Two-Risk CLN Matrix with Restructuring of Fitch's Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes. The two risk presenting entities are Goldman Sachs International (not rated; supported by a guarantee from Goldman Sachs Group, Inc, ('A'/'F1'/Stable) and France ('AAA'/'F1+'/Negative).

The notes' Outlook will typically be determined by the Outlook of the weakest link. The agency applies a sensitivity stress for all risk presenting entities with a Negative Outlook. If the notes' implied rating according to the sensitivity stressed ratings indicates a downgrade, then a Negative Outlook is assigned. The weakest link (Goldman Sachs Group Inc) currently has a Stable Outlook. The strongest link (France) currently has a Negative Outlook, however any negative rating action of up to three notches will not affect the notes' 'A-sf' rating.

The notes are issued by Signum Finance II Plc, a repackaging note programme arranged by Goldman Sachs International with limited liability and incorporated under Irish law. Non-petition language included in the master programme warrant that no party to any series will be able to petition for the winding-up of the issuer as a consequence of the default of any particular series. In addition, limited recourse clauses in the programme restrict the noteholder of a given series to only have recourse to the collateral assigned to this series.