Fitch: Proposed Supplemental Indenture Will Not Impact Ratings of Guggenheim SREF 2006-4
March 15 2012 - 5:28PM
Business Wire
Fitch Ratings has been notified by the collateral manager of a
proposed Supplemental Indenture to Guggenheim Structured Real
Estate Funding 2006-4 (CDO), which will allow the CDO to transfer
its interest in foreclosure collateral to a 'permitted issuer
subsidiary'.
In order to accomplish this, the supplemental indenture revises
the SPE covenant that restricts the CDO from owning subsidiaries.
While ownership of the permitted issuer subsidiary is consistent
with the SPE nature of the CDO, the supplemental indenture will
make it clear that the CDO can own interests in such permitted
issuer subsidiaries. The supplemental indenture provides that for
all purposes under the indenture, any collateral interest
transferred to a permitted issuer subsidiary shall be treated as if
it were a collateral interest owned directly by the issuer. The
ratings of the transaction will not be affected by this
supplemental indenture.
It remains the exclusive responsibility of the noteholders to
perform their own risk analysis of any proposed amendments. Fitch
is not a party to the transaction and therefore does not provide
consent or approval, as that remains the sole preserve of the
transaction parties. Fitch expects to be notified by the trustee
when or if the supplemental indenture is executed.
Additional information is available at
'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4,
2011);
--'Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan
Floating-Rate Transactions' (Dec. 1, 2011);
--'Global Rating Criteria for Structured Finance CDOs' (Oct. 6,
2011).
Applicable Criteria and Related Research:
Global Rating Criteria for Structured Finance CDOs
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651560
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan
Floating-Rate Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657734
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