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Kingdom of Belgium |
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The collateral backing the notes comprises 'AAA' rated ABS (as long as the repo counterparty remains rated 'A-1+'), 'AAA' rated Pfandbriefe, or securities rated 'AA+' or better issued by the Kingdom of Belgium, the Republic of France, or the Federal Republic of Germany. The collateral for the notes is a portfolio of securities (Obligations Lineaires) issued by the Kingdom of Belgium (AA+/Stable/A-1+), which are purchased via a repurchase agreement. The preliminary ratings are based the adequate level of subordination underneath each class of notes; the amount of "excess spread" injected in the transaction by KBC Bank NV (KBC; single-'A'-plus/Stable/'A-1') through swap counterparty payments; the sound mechanics of the repurchase agreement and the credit default swap; the characteristics of the securities of the Kingdom of Belgium (double'A'-plus/Stable/'A-1'-plus) as collateral; and the sound legal structure of the transaction. |
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