Cheyne Finance ratings downgraded, put on negative watch - S&P |
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Published
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Wed, 29 Aug 2007 09:18
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MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has lowered its issuer credit ratings on Cheyne Finance PLC and Cheyne Finance LLC to 'A-/A-2' from 'AAA/A-1+' and placed the ratings on negative watch.S&P has also lowered and placed on negative watch its credit ratings on the commercial paper and on the medium-term notes issued by the two co-issuing structured investment vehicles.S&P said the rating action is due to the current pressure on market prices and the associated recent deterioration in the net asset value (NAV) of this vehicle, which have reached a level where the ratings have come under pressure.The rating on the CP has been downgraded to 'A-2' from 'A-1+' and the rating on the senior notes has been cut to 'A-' from 'AAA'.Cheyne Finance is a structured investment vehicle managed by Cheyne Capital Management Ltd, which is responsible for purchasing assets, managing the portfolio, and overseeing the issuance of CP and medium-term notes.S&P said the vehicle breached its major capital loss test and so an enforcement event has occurred. In accordance with the programme documents, the portfolio manager may begin an orderly liquidation of assets and will estimate the expected proceeds from future liquidations by Aug 30.TFN.newsdesk@thomson.comans/manCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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S&P lowers ratings on 2.312 bln usd worth of US CDO of ABS transactions 