Rating Lowered On Curzon Funding#s MTN Program Following The Downgrade Of AIG Financial Products

Stocks and Financial Services Press Releases Thursday February 16, 2017 16:52
LONDON--16 Feb--S&P Global Ratings

LONDON (S&P Global Ratings) Feb. 16, 2017--S&P Global Ratings today lowered its credit rating on Curzon Funding Ltd. and Curzon Funding LLC's euro- and U.S. medium-term note (MTN) program to 'BBB+ (sf)' from 'A- (sf)'.

Today's downgrade follows the lowering of our long-term counterparty credit rating on AIG Financial Products Corp. (AIGFP) to 'BBB+' from 'A-' on Jan. 31, 2017 (see "American International Group Inc. Downgraded To 'BBB+', Outlook Stable; Subsidiary Ratings Unaffected").

Curzon Funding invests in assets such as debt obligations, bond notes, trust certificates, and securities subject to an investment policy.

Under the total return swap, Curzon Funding pays AIGFP all income generated on the assets as well as any capital gains. In return, if the sale of its assets does not generate sufficient income, AIGFP ensures that Curzon Funding is able to fully meet all of its payment obligations. However, there are currently no MTNs or asset-backed commercial paper (ABCP) outstanding under the program.

Under our criteria, this results in the rating on Curzon Fundings' MTN program being weak-linked to the long-term rating on AIGFP. As such, we would generally reflect a change to the long-term rating on AIG Financial Products in our rating on Curzon Funding's MTN program. Therefore, we have lowered to 'BBB+ (sf)' from 'A- (sf)' our rating on Curzon Funding's MTN program.

Curzon Funding is a fully-supported arbitrage ABCP and MTN issuer.

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