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Insurer Covers' Political Risk'.(Sovereign Risk Insurance Ltd.'s new risk insurance policy)(Brief Article)

Mortgage Servicing News

| November 01, 2002 | COPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Sovereign Risk Insurance Ltd. has completed a political risk insurance policy that supports a groundbreaking $49.7 million securitization of residential, mortgage-backed bonds in Costa Rica.

Standard & Poor's gave the transaction its top rating of AAA and Moody's Investors Service Inc. gave it a slightly lower investment grade rating of Aa2.

This marks the first time the rating agencies have assigned a transaction a higher rating than the sovereign rating of Costa Rica (which at press time was a speculative grade BB as per S&P and Ba2 as per Moody's), according to Sovereign Risk Insurance. The ratings reflect the structure of the securitization, the transfer and convertibility policy issued by ...

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