PubFinCriteria_2006_part1_final1.qxp
market—even though backup facilities are far from a guarantee that liquidity will, in the end, be available. For example, an obl ...
Standard & Poor’s looks for an issuer to have on hand sufficient liquid resources, in any combination of revolving credit ag ...
might not be an acceptable substitute for self-liq- uidity and the presence of the line may not reduce the issuer’s liquidity on ...
maturity, and the greater the volatility and market risk of the assets, then the higher the coverage requirement such as 1.50 fo ...
assets that have greater volatility due to poor credit quality and longer maturity. Market valuation peri- ods greater than week ...
investments should not result in a liquidity crisis for the institution or municipality. Therefore, assets available for liquidi ...
The acceptability of the obligor’s proposed liqui- dation mechanics, especially with regard to timing, will be based on Standard ...
that immediatelysuspend the SBPA provider’s obli- gation to purchase are viewed the same as immedi- ate termination events. As a ...
The occurrence of a final, non-appealable judg- ment against the obligor requiring payment by the obligor and such judgment is ...
occurrence of the automatic termination event within the specified period. The termination by the SBPA provider can happen no ea ...
Forward starting swaps Forward starting swaps are typically structured as floating-to-fixed swaps for synthetic advance refundin ...
purchased a swaption, it now has the right to exercise the option based on future dates and/or interest rate conditions. The iss ...
held to a higher rating threshold due to the potential for decreased liquidity of the swap should the swap counterparty need to ...
risk, but gives the issuer additional financial flexibility, reduces termination risk, and could result in a lower fixed rate th ...
These remedies should be limited to the swap agree- ment and should not be written into or cross-default- ed to the bond indentu ...
charges. An issuer that has limited liquidity resources should include provisions in the swap agreement that allows the issuer t ...
■Acceptable additional termination events, including maximum rating triggers; ■Use of insurance or collateral to protect counter ...
measures the potential risk to an issuer’s revenue stream and reserve levels resulting from rising variable rates. The ratio is ...
ty of ‘AAA’ rated monoline bond insurers combined with the overall stability of municipal ratings indi- cates that a termination ...
Due to the criteria revisions discussed in this report, 271, or 54% of the 505 scores changed. Of the 54% that changed, 26% were ...
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