Fitch Affirms Rating and Outlook of Belize Sovereign Investments III

CHICAGO--()--Fitch Ratings has taken the following rating actions on the notes issued by Belize Sovereign Investments III (BSI):

--$85.7 million notes affirmed at 'A'; Outlook Stable.

The rating on the notes is supported by the financial strength of the insurance provider, Steadfast Insurance Company, the relatively straightforward claims paying process, and to a lesser extent, the default probability of the Government of Belize (GOB). The insurance policy covers 100% of principal and accrued interest on the notes should the GOB fail to honor its obligation.

Steadfast is a subsidiary of Zurich North America (ZNA) and Fitch rates Steadfast's Insurer Financial Strength (IFS) rating at 'A+'.

In rating the transaction, Fitch took into consideration limitations to the policy's claims-paying probability. Specifically, Fitch focused on the policy's conditionality, termination events, and claims-paying process. Fitch believes this claims-paying process is straightforward with limited conditions and limited potential for timing delays.

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

Applicable Criteria and Related Research:

--'Criteria for Rating Transactions Backed by Political Risk Insurance,' June 28, 2010;

--'Global Structured Finance Rating Criteria' (Aug. 13, 2010).

Applicable Criteria and Related Research:

Criteria for Rating Transactions backed by Political Risk Insurance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=535226

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

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Contacts

Fitch Ratings
Primary Analyst
Cristina Madero, +1-312-368-2080
Analyst
Fitch, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Bernardo Costa, +1-312-606-3315
Director
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations:
Cindy Stoller, +1-212-908-0526
Email: cindy.stoller@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Cristina Madero, +1-312-368-2080
Analyst
Fitch, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Bernardo Costa, +1-312-606-3315
Director
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations:
Cindy Stoller, +1-212-908-0526
Email: cindy.stoller@fitchratings.com