The Puerto Rico AAA Portfolio Target Maturity Fund,
Inc.'s 21,000 Index Basket Principal Protected Notes, 2006 series C
are rated 'AA' by Fitch Ratings.
The rating is based on asset coverage and basic maintenance amount tests for the fund, the track record of the asset manager, and the ability of the fund to make the one-time dividend payment on the notes, based on the change in value of the Dow Jones EURO STOXX 50 Index and the S&P 500 Index, in accordance with the transaction documents. The fund has entered into an interest rate swap in order to hedge against exposure to changes in the value of the Dow Jones EURO STOXX 50 Index and the S&P 500 Index. The rating assigned by Fitch may change with the rating of the swap counterparty.
The Puerto Rico AAA Portfolio Target Maturity Fund is a closed-end management investment company that invests primarily in Puerto Rico and U.S. municipal, government, and mortgage-backed securities. The fund is required to invest at least 67% of the proceeds in Puerto Rico obligations. In addition, at least 95% of the portfolio assets must be rated 'AAA'.
UBS Asset Managers of Puerto Rico is the investment adviser for the fund, and is a division of UBS Trust Company of Puerto Rico. UBS Trust Company of Puerto Rico is the collateral agent, and an affiliate of UBS AG and UBS Financial Services Puerto Rico, the fund's dealer.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The rating is based on asset coverage and basic maintenance amount tests for the fund, the track record of the asset manager, and the ability of the fund to make the one-time dividend payment on the notes, based on the change in value of the Dow Jones EURO STOXX 50 Index and the S&P 500 Index, in accordance with the transaction documents. The fund has entered into an interest rate swap in order to hedge against exposure to changes in the value of the Dow Jones EURO STOXX 50 Index and the S&P 500 Index. The rating assigned by Fitch may change with the rating of the swap counterparty.
The Puerto Rico AAA Portfolio Target Maturity Fund is a closed-end management investment company that invests primarily in Puerto Rico and U.S. municipal, government, and mortgage-backed securities. The fund is required to invest at least 67% of the proceeds in Puerto Rico obligations. In addition, at least 95% of the portfolio assets must be rated 'AAA'.
UBS Asset Managers of Puerto Rico is the investment adviser for the fund, and is a division of UBS Trust Company of Puerto Rico. UBS Trust Company of Puerto Rico is the collateral agent, and an affiliate of UBS AG and UBS Financial Services Puerto Rico, the fund's dealer.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.