Rating agencies study risk securitization deals

Difficulties experienced by the financial guarantee companies are having an impact on the rating of various notes used in risk securitization deals. This month, rating agency AM Best downgraded the debt rating of Northwind Holdings and Tailwind Holdings, two companies used in risk securitizations carried out by US disability insurer Unum, because of the difficulties at financial guarantor MBIA, which ensures the timely payment of scheduled interest and the repayment of principal at maturity to the note holders.