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TEXT-S&P lowers rtg on ABCP program Scaldis after sponsor downgrade
November 9, 2012 / 11:21 AM / 5 years ago

TEXT-S&P lowers rtg on ABCP program Scaldis after sponsor downgrade

Nov 09 -

OVERVIEW

-- On Oct. 25, 2012, we lowered our rating on Fortis Bank to ‘A+/A-1’ from ‘AA-/A-1+'. Fortis Bank is the sponsor and liquidity provider for Scaldis’ ABCP program.

-- Scaldis has informed us that it will not take action to mitigate the downgrade of the sponsor bank. We view our rating on Scaldis to be weak linked to our rating on Fortis Bank as the sponsor bank.

-- We have therefore lowered our rating on Scaldis’ ABCP program.

-- Scaldis is a partially supported multiseller ABCP program sponsored by Fortis Bank.

Standard & Poor’s Ratings Services today lowered its credit rating to ‘A-1 (sf)’ from ‘A-1+ (sf)’ on Scaldis Capital Ltd. And Scaldis Capital (Ireland) Ltd.’s asset-backed commercial paper (ABCP) program.

On Oct. 25, 2012, we lowered our rating on Fortis Bank S.A./N.V. to ‘A+/A-1’ from ‘AA-/A-1+’ (see “Various Rating Actions Taken On French Banks Due To Rising Economic Risks”). Fortis Bank is the sponsor and liquidity provider for Scaldis’ ABCP program.

In the event of a downgrade of the liquidity provider, Scaldis has the option to replace or draw to cash the liquidity provider’s commitment. Scaldis informed us that it will not take any remedial action. Accordingly, under our global ABCP criteria, this makes our rating on Scaldis weak-linked to our ‘A-1’ short-term issue credit rating on Fortis Bank) (see “Global Asset-Backed Commercial Paper Criteria,” published on Sept. 29, 2005).

We have therefore today lowered our rating on Scaldis’ ABCP program to ‘A-1 (sf)’ from ‘A-1+ (sf)'.

Scaldis is a partially supported multiseller ABCP program sponsored by Fortis Bank.

RELATED CRITERIA AND RESEARCH

-- Various Rating Actions Taken On French Banks Due To Rising Economic Risks, Oct. 25, 2012

-- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012

-- Principles Of Credit Ratings, Feb. 16, 2011

-- Standard & Poor’s Analysis Of ABCP Ratings Following Changes To Ratings On Support Providers, Dec. 18, 2008

-- Global Asset-Backed Commercial Paper Criteria, Sept. 29, 2005

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