Last week’s page 1 story on the secutitization of private equity vehicles stated that Capital Dynamics’ Prime Edge Capital bonds were believed to have received the first-ever stand-alone credit rating for a private equity vehicle. It also mentioned that a 1999 predecessor to Prime Edge, named Princess Private Equity Holding Ltd., had been unrated but considered investment grade due to an insurance wrap from Swiss Re.
Since publication of that story, sources have told Private Equity Week that the Princess bonds had actually received a private stand-alone investment-grade rating from Fitch. Its rating was then boosted by the insurance wrap before being sold.
In addition, the same sources report that Fitch declined to rate the Prime Edge bonds when they were presented last year.