S&P - Public Finance Criteria (2007). - The Global Clearinghouse

Municipal Structured FinanceTable 5 Low Correlation Reference Table (continued)BB+ BB BB- B+ B B- CCC+ CCC CCC- DAAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAAAA+ AAA AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+AA AAA AA+ AA AA AA AA AA AA AA AAAA- AAA AA AA AA- AA- AA- AA- AA- AA- AA-A+ AAA AA AA- AA- A+ A+ A+ A+ A+ A+A AAA AA- AA- A+ A A A A A AA- AAA A+ A+ A A A- A- A- A- A-BBB+ AAA A A- A- A- BBB+ BBB+ BBB+ BBB+ BBB+BBB AAA A- A- BBB+ BBB+ BBB+ BBB BBB BBB BBBBBB- AAA BBB+ BBB+ BBB BBB BBB BBB- BBB- BBB- BBB-BB+ AAA BBB+ BBB BBB BBB BBB- BBB- BB+ BB+ BB+BB AAA BBB BBB BBB BBB- BBB- BB+ BB BB BBBB- AAA BBB BBB- BBB- BB+ BB+ BB BB BB- BB-B+ AAA BBB BBB- BB+ BB+ BB BB- BB- B+ B+B AAA BBB- BB+ BB+ BB BB- B+ B+ B BB- AAA BBB- BB+ BB BB- BB- B B B- B-CCC+ AAA BB+ BB BB- B+ B B- B- CCC+ CCC+CCC AAA BB BB BB- B+ B B- CCC+ CCC+ CCCCCC- AAA BB BB- B+ B B- CCC+ CCC+ CCC CCC-D AAA BB BB- B+ B B- CCC+ CCC CCC- DLegal And Structural ConsiderationsThe joint-support criteria are only applicable whenthe obligation is legal, valid, and enforceableagainst both (or all three) obligors. Any preferencepayment or clawback risk must be addressed in thestructure of the transaction.Analysts will exercise judgment to determinewhether the joint-support criteria should beapplied if the obligation is unusual or unpredictable.Note the eligibility of investment agreementsto be jointly supported by more than oneprovider (see “Public Finance Criteria: JointSupport To Investment Agreements”).ImplementationTo ensure transparency of Standard & Poor’s publicratings, the joint-support approach will only beapplied when both obligors have a public long-termand, if relevant, short-term rating unless the jointsupportcriteria affect only one element of a complextransaction. In addition, where one of thesupporters is a U.S. public finance obligor, the bondissue will also receive a Standard & Poor’sUnderlying Rating (SPUR) reflecting the unenhancedlong-term rating of the issue.If the rating on a supporting obligor is placed onCreditWatch, Standard & Poor’s will either placethe rating on the jointly supported issue onCreditWatch or state publicly that the latter ratingwill be unaffected by the obligor’s rating review. ■222 Standard & Poor’s Public Finance Criteria 2007