NEW YORK--(BUSINESS WIRE)--
Fitch has taken the following rating action on the notes issued by
Belize Sovereign Investments III (BSI):
-- $85.7 million notes affirmed at 'A'; Outlook Stable.
The rating action reflects Fitch's Insurer Financial Strength (IFS)
rating of Steadfast Insurance Company (Zurich Insurance Company Ltd.;
'A+', Outlook Positive). The affirmation of the notes also reflects the
timely payment of interest on a semi-annual basis.
The one-notch rating differential reflects 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.
Repayment of the notes is backed by two restructured government of
Belize (GOB) sovereign obligations that benefit from two insurance
policies underwritten by Steadfast. Each GOB obligation has its
respective insurance policy which directly covers any non-payment by the
GOB. Payments from the GOB on the underlying notes will pass through to
the BSI trust to cover payments on the BSI notes. The amortization
schedules are identical.
Zurich Insurance Company Ltd. is the primary operating entity of the
Zurich Financial Services group and acts as a holding company for the
insurance operating subsidiaries. The group has focused on insurance
since 2002 and has a strongly developed insurance franchise.
Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Criteria for Rating Transactions Backed by Political Risk Insurance,"
July 26, 2011;
--'Global Structured Finance Rating Criteria' (June 6, 2012).
Global Structured Finance Rating Criteria
Criteria for Rating Transactions Backed by Political Risk Insurance
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Fitch RatingsPrimary AnalystCristina Madero, +1-312-368-2080Associate
DirectorFitch, Inc.70 West Madison StreetChicago, IL
60602orSecondary AnalystCinthya Ortega, +1-312-606-2373DirectororCommittee
ChairpersonGreg Kabance, +1-312-368-2052Managing DirectororMedia
Relations:Elizabeth Fogerty, +1-212-908-0526Email: email@example.com
Source: Fitch Ratings