Italian bank Banco di Sicilia's (BdS) recent E380 million ($369 million) Island Finance (ICR-4) transaction, backed by a E1.4 billion portfolio of non-performing loans, was the first Italian NPL deal to receive triple-A ratings on its senior tranche. It was also the first deal of its kind to receive ratings from all four international agencies.

The deal, arranged by Morgan Stanley Dean Witter, was split into five tranches, four of which were public floating rate issues and one a E40 million tranche, rated double B, that was retained by BdS.

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