Fitch Downgrades Latam Trust 2007-102
NEW YORK -- November 7, 2013
Fitch Ratings downgrades the rating for Latam Trust, Series 2007-12, Cayman
Islands (Latam Trust 2007-102) as follows:
--CLP26,462,500,000 UF-Adjusted Certificates to 'Bsf' from 'BB-sf'; Outlook
KEY RATING DRIVERS
Fitch's rating of Latam Trust 2007-102 (the issuer) is credit-linked to
Fitch's assessment of the reference entity, Sociedad de Inversiones Pampa
Calichera S.A. (Pampa Calichera). Fitch's assessment of the company, is based
upon publicly available information including NRSRO ratings and Fitch's
internal credit view. The notes' rating is delinked from the swap
counterparty, Merrill Lynch Capital Services, Inc.'s parent, Bank of America
Corporation, rated 'A/F1', Outlook Stable by Fitch.
The rating remains sensitive to Fitch's assessment of Pampa Calichera. A
change in Fitch's assessment of the qualified investment, Pampa Calichera,
would likely result in a change in the rating of the notes.
The issuer's proceeds were used to purchase USD50 million qualified
investments in the form of Pampa Calichera bonds, which collateralize the
credit default swap. The transaction is designed to provide credit protection,
which is arranged through a credit default swap (CDS) between the issuer and
the swap counterparty, Merrill Lynch Capital Services, Inc.'s parent, Bank of
The rating addresses the timely payment of interest in U.S. dollars (USD)
converted at the prevailing UF-Adjusted CLP/USD spot exchange rate and the
ultimate repayment of principal on the maturity date at the prevailing CLP/USD
spot exchange rate as per the transaction's governing documents. The rating
does not address any foreign exchange risk.
Additional information is available at 'www.fitchratings.com'.
The information used to assess this rating was sourced from the swap
counterparty and the public domain.
Applicable Criteria & Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes'
(Feb. 21, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes
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