Clarified accounting guidelines for regions of Italy are starting to spur locally guaranteed securitizations throughout the country. Bankers are pointing to last month's PRIMA deal from the region of Friuli-Venezia Giulia as one of the first to be structured with the on-/off-balance sheet distinctions in mind (see ASR 5/31).

The 51 million (US$61.4 million) transaction, led by Dexia Credipop, is backed by revenues resulting from the sale of 123 real estate properties sold by the region to the issuer. Standard & Poor's allotted the single-tranche offering a 'AA' rating based on the government guarantee provided by the region of Friuli. This is the first time assets of this type have been secured by a local authority in Italy, a bank spokesperson confirmed.

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