Scope Ratings GmbH recently affirmed an A+ rating for Single Platform Investment Repackaging Entity SA’s (SPIRE) Series 2022-308 notes, a EUR 120.9 million issuance of repackaged installment notes of Czech collateral due in 2032. The rating action, conducted on July 27, 2023, highlights Scope’s positive outlook on the credit quality and characteristics of the underlying assets, the credit quality of the swap counterparty, and the overall structure of the transaction. However, upon closer examination, certain aspects of the rating raise concerns about potential over-optimism.
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Conclusion:
Scope’s optimistic A+ rating for SPIRE Series 2022-308 notes highlights confidence in the credit quality of the underlying collateral and swap counterparty, as well as the transaction’s structure. However, certain complexities and potential risks related to the embedded swap, early settlement, and credit support annex could be indicators of an overly optimistic outlook. It is crucial for investors to carefully assess these factors and potential vulnerabilities in the underlying collateral to make informed decisions.
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