Fitch Upgrades Ratings Of Minerva S.R.L. To 'AA'

Business Wire, Oct 1, 2002

Business Editors

LONDON--(BUSINESS WIRE)--Oct. 1, 2002

Fitch Ratings, the international rating agency, has upgraded the following classes of notes issued by Minerva S.r.l.:

EUR 39,964,200 Class A floating-rate notes due 2015: to 'AA' from 'AA-' (AA minus)

The upgrade follows a review of the performance and collections to date as well as the upgrade of the Republic of Italy's Long-term rating to 'AA' from 'AA-' (AA minus) in June 2002. Collections on the portfolio are EUR27.9 million, which is in excess of the issuer's business plan of EUR26.8m. Profitability on resolved claims as a percentage of the purchase price is 129%.

The source of payment of interest and repayment of principal on the rated notes is represented by: -- Collections on a pool of 7,530 non-performing loans (NPL's) with an initial GBV of EUR216.6m. The current outstanding GBV is EUR183.8m.

-- A EUR 50m liquidity facility provided by Etruria is available at each collection period to pay interest and principal on the rated notes in the event that recoveries do not meet the expected amount. Etruria is not rated by Fitch and therefore the obligations under this facility are backed by a pool of EUR52m Italian treasury bonds.

Fitch Ratings will continue to monitor the profitability of the resolved loans and the characteristics of the unresolved claims to ensure that these are in line with its original expectations. Further information on the performance on this transaction is available to subscribers at www.fitchresearch.com.