Moody’s Affirms Nightingale SIV on Backing from AIG Financial
Moody's Investors Service on Wednesday affirmed its triple-A and Prime-1 ratings on Nightingale Finance, a structured investment vehicle, after the vehicle received full backing from AIG Financial Products Corp.
SIVs raise funding through short- and medium-term debt issues and invest the proceeds in longer-term securities, mainly asset-backed securities and bank debt. They have run into problems as their access to funding has dried up while the value of their portfolios has fallen.
"Today's rating affirmation follows the successful restructuring of Nightingale by the vehicle's sponsor, Banque AIG," Moody's said in a statement.
Banque AIG is a subsidiary of AIG Financial Products Corp, which in turn is a subsidiary of insurer and financial services provider American International Group.
The ratings agency said AIG Financial Products had agreed to purchase Nightingale's commercial paper and medium-term notes and provide funding through securities repurchase agreements in amounts equal to the outstanding debt.
Published on January 23, 2008
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