CHICAGO--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on the notes issued by Belize Sovereign Investments III (BSI):
--$85.7 million notes affirmed at 'A'; Outlook Stable.
The rating on the notes is supported by the financial strength of the insurance provider, Steadfast Insurance Company, the relatively straightforward claims paying process, and to a lesser extent, the default probability of the Government of Belize (GOB). The insurance policy covers 100% of principal and accrued interest on the notes should the GOB fail to honor its obligation.
Steadfast is a subsidiary of Zurich North America (ZNA) and Fitch rates Steadfast's Insurer Financial Strength (IFS) rating at 'A+'.
In rating the transaction, Fitch took into consideration limitations to the policy's claims-paying probability. Specifically, Fitch focused on the policy's conditionality, termination events, and claims-paying process. Fitch believes this claims-paying process is straightforward with limited conditions and limited potential for timing delays.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Criteria for Rating Transactions Backed by Political Risk Insurance,' June 28, 2010;
--'Global Structured Finance Rating Criteria' (Aug. 13, 2010).
Applicable Criteria and Related Research:
Criteria for Rating Transactions backed by Political Risk Insurance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=535226
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
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