Fitch Upgrades Cloverie Plc Series 2007-52

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posted: 18 DAYS 13 HOURS AGO

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Fitch Ratings has upgraded the notes issued by Cloverie Plc Series 2007-52 (Cloverie 2007-52) following the upgrade of the reference entity. A detailed list of the rating action follows at the end of this press release.

The rating action reflects Vale S.A.'s Issuer Default Rating (IDR) of 'BBB' with a Stable Outlook. The rating also considers the credit quality of the Citigroup Funding Inc. senior unsecured notes as the eligible investments issued by Citigroup Inc. (rated 'A+'; Outlook Stable by Fitch), and Citigroup Inc. as guarantor to Citigroup Global Markets Limited (CGML), the swap counterparty to the transaction.

The rating addresses the likelihood that investors will receive full and timely payments of interest, as per the transaction's governing documents, as well as the stated balance of principal by the legal final maturity date. Payments of interest and principal will be made in US dollars (USD) adjusted according to the prevailing value of the Unidad de Fomento (UF) and the Chilean Peso (CLP)/USD exchange rate.

Cloverie 2007-52 is designed to provide credit protection on the reference entity, Vale S.A., with a reference amount of USD10 million. The credit protection is arranged through a credit default swap (CDS) between the issuer and the swap counterparty, CGML. The CDS is collateralized by the Citigroup Funding Inc. senior unsecured notes as the eligible investments issued by Citigroup Inc.

Fitch has taken the following rating action:

--USD10,000,000 credit-linked notes upgraded to 'BB+', Outlook Stable from 'BB', Outlook Positive.

The revised outlook to the notes is based on the Stable Outlook of Vale S.A.'s rating.

The rating action reflects the application of Fitch's current criteria which are available at ' www.fitchratings.com' and specifically includes the following report:

--'Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes' (April 13, 2009).

Additional information is available at ' www.fitchratings.com'.

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