S&P affirms Primus Financial

Standard & Poor's said it affirmed the AAA issuer credit rating on Primus Financial Products LLC after it disclosed changes in the unrealized market value of the credit protection portfolio, which resulted from widening credit spreads.

Fluctuating market value of the company's credit swap portfolio doesn't have a direct effect on the issuer credit rating, the agency said, due to the continuation structure that allows Primus to hold these positions through maturity rather than forcing it to liquidate them over a short time period. In addition, the company does not post collateral in favor of any counterparties with regard to any swap positions that have a negative mark-to-market.

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