Fitch Ratings has issued a pre-sale report for NCUA Guaranteed Notes Trust 2011-C1. Fitch expects to give AAAsf ratings to both the $235 million senior I-A notes and the $605 million senior II-A notes.
Proceeds from the issuance of the senior I-A and II-A notes and the owner trust certificates will be used to purchase a portfolio of 29 floating-rate commercial mortgage-backed securities previously owned by four credit unions that have been placed into conservatorship by the National Credit Union Administration (NCUA) board. The collateral will be split into two pools, each of which collateralizes its respective series of senior notes, with no cross-collateralization between the two series. Each series of senior notes will also have differing monthly payment dates and legal final maturity dates.
The NCUA, which is unrated, will provide an absolute and unconditional guaranty of payment to the senior notes. The guaranty agreement covers the timely payment of interest and principal when due and payable up to and including the legal final maturity dates of each series, Fitch explains.
SOURCE: Fitch Ratings
