TEXT-Fitch maintains Cedulas TDA 13 on rtg watch neg
Cedulas TDA 13, FTA, notes (ISIN ES0318826007): ‘AAsf’; Maintained on RWNThe agency says that further to the placement of Cedulas TDA 13, FTA on RWN due
to counterparty risk (see “Fitch Places 14 Spanish SF Transactions On Rating
Watch Negative Due To Counterparty Risk” dated 06 October 2011 at
www.fitchratings.com), Fitch has received confirmation from the SPV management
company (Titulizacion de Activos SGFT) that the counterparty risk on Banco
Popular Espanol (BPE; ‘BBB+’/RWN/’F2’) as liquidity bank account provider has
been fully mitigated as of 07 October 2011, when Banco Santander
(‘AA-‘/Negative/’F1+’) replaced BPE under the terms of the liquidity bank
account agreement.Consequently, the implementation of this remedial action adequately mitigates
the counterparty risk that was present on this transaction following the initial
rating action on BPE (see ‘Fitch Downgrades Banco Popular to ‘A-‘; Outlook
Negative ’ dated 06 July 2011 at www.fitchratings.com).Nevertheless, the RWN is maintained on the transaction as Fitch took another
rating action following the breach of an overcollateralisation (OC) commitment
of one of the participating banks (see ‘Fitch Places Two MICH Transactions
Participated by Banco de Valencia on RWN’ dated 15 September 2011 at
www.fitchratings.com). As this action is still unresolved, the RWN on the
transaction is maintained.
UPDATE 1-Xstrata posts coal output record, Q3 copper dips
* Copper output dips 4 pct on yr ago* Says all major growth projects on schedule, on budgetLONDON, Oct 18 (Reuters) - Miner Xstrata posted
record thermal coal production in the third quarter and a more
than 7 percent rise in overall coal output, thanks to the start
of operations at its Mangoola mine and an ongoing recovery from
a flood-hit start to 2011.Copper output, however, was in line with the second quarter
but down 4 percent on the same period a year ago, after
production was dented by lower grades, repairs and July blizzard
conditions at its Collahuasi mine in Chile.Copper is the most profitable product for Xstrata, with coal
ranking second.Declining ores and interrupted supply, a problem across the
copper industry, also hit copper production at rival Rio Tinto
, which downgraded guidance last week.Zinc in concentrate production slipped 2 percent after lower
output at the Antamina mine in Peru, while nickel production
increased 15 percent year-on-year to 26,738 tonnes, boosted by
the ramp up of Falcondo ferronickel operation in the Dominican
Republic.Xstrata said its operating and financial remained “strong”
with the company’s financial position still “robust”. It added
all major growth projects remain on timetable and within budget.
Central America death toll at 45 from heavy rains
The destructive weather system that bore down from the Pacific killed 22 in Guatemala, and nine in Honduras, two of whom were struck by lightning, emergency services said.Hundreds were stranded on the roofs of their homes in Honduras, especially in the southern regions of Choluteca and Valle, local emergency officials said.In El Salvador, where seven people were killed, President Mauricio Funes declared a state of emergency. At least seven others died and thousands more were evacuated in Nicaragua.No deaths were reported in Costa Rica, although dozens of families were evacuated from communities on the Pacific coast and the capital, San Jose.Strong rain continued to fall in parts of Honduras and Guatemala on Saturday, while precipitation was easing in Nicaragua, El Salvador and Costa Rica.At least four people also died in Mexico earlier in the week when Category 2 Hurricane Jova struck from the Pacific, forcing the country’s busiest port to close. The main cargo port of Manzanillo later reopened.
Florida says more work needed in foreclosure talks
* New round of talks to be held in Washington on ThursdayBy Kevin GrayMIAMI, Oct 12 (Reuters) - Florida’s attorney general
dismissed media reports that a final settlement is imminent in
multi-state negotiations over alleged foreclosure abuses by
U.S. banks.Florida Attorney General Pam Bondi also said states that
have pulled out of the negotiations should return to bolster
any deal. Federal, state and bank officials are expected to
hold another round of negotiations in Washington on Thursday.”I read this morning that we’re settling this tomorrow. I
doubt that’s going to happen,” Bondi said, speaking on
Wednesday during an event in Miami.”We still have states that aren’t on board yet. We’re
trying to bring in some people who left the table.”Negotiations toward a settlement have been going on for
months, with penalties on the banks of up to $20 billion being
discussed. A settlement would free up a backlog of foreclosures
weighing on housing markets and dragging on economic growth.Banks, including Bank of America Corp , JPMorgan
Chase & Co , Wells Fargo & Co and Citigroup Inc are seeking to maximize their legal immunity. Investor
worries about banks’ financial liability have helped send bank
shares falling this year.Last month, the state of California pulled out of the
negotiations, with the state’s attorney general saying the
talks had failed to provide enough relief for homeowners and
released the banks from too many legal claims.New York abandoned the negotiations in August expressing
similar concerns.”The main thing I want to focus on is bringing everybody
back to the table,” Bondi said. “That right now is the most
important thing.”Whether we agree or disagree, we all have to stay at the
table or we’re never going to get anything done.”The banks are accused of dealing with a deluge of mortgage
defaults that began in 2008 by cutting legal corners and
unlawfully rushing through foreclosure paperwork.The claims include allegations of “robo-signing” in which
lenders’ employees or outside contractors produced and signed
reams of foreclosure documents without fully understanding
their content.A settlement with all 50 states and federal authorities
could help the banks move beyond the legal fallout that has
dogged them since the height of the financial crisis.The talks have been bogged down by disagreement over the
banks’ legal exposure.Sources close to the negotiations have told Reuters a
settlement is possible without all states signing on. Even if a
state chooses not to sign on to a final deal, its homeowners
could still benefit, the sources said.Details over the size of any penalties and how that money
would be divvied up have not yet been worked out, people
familiar with the talks said.”We’re doing our best to resolve this,” Bondi said.
GLOBAL MARKETS-Stocks slip after Slovakia, Alcoa
Caution ahead of the European Union’s bank recapitalisation
plan due later on Wednesday, designed to cushion the impact of a
possible Greek default on the region’s banks, also encouraged
investors to pause after a five-day rally in world stocks.Although Slovakia is still expected to enact the measure by
the end of this week, the twist highlighted the difficulty in
forging a united response to the worsening sovereign debt crisis
in a 17-member currency zone.Alcoa kicked off the U.S third-quarter earnings
season with a weak note. The largest U.S. aluminum producer’s
shares fell after an economic slowdown hurt metal demand,
denting its profit and sales.JP Morgan and Google are due to report
their earnings later in the week.”Caution is still the watch word,” said Keith Bowman, equity
analyst at Hargreaves Lansdown.”But we can’t read too much into just one set of results.
Additionally, there is still hope that Slovakia will pass the
expansion of the bailout fund in the very near term.”MSCI world equity index fell 0.1 percent.
The benchmark index is now 11 percent above a 15-month low hit
earlier in October after a five-day rally.European stocks fell 0.7 percent while emerging
stocks rose 0.3 percent, thanks to a rebound in
Chinese shares .U.S. crude oil fell 0.3 percent to $85.53 a barrel.
Bund futures rose 27 ticks.The dollar was steady against a basket of major
currencies. The euro was also broadly unchanged on the
day at $1.3646.
