Moody's Investors Service downgraded the E95 million class A notes of the Fiordillate insurance-wrapped Italian football securitization (see ASR 5/13/2002). The downgrade is a yellow card for the deal, but more significantly, it means that issuance of wrapped deals will calm until Italian insurers set their priorities straight.

"I would say this deal is a one-off," said Stelvio Bo at Abaxbank, managing bank on the transaction. "The insurer has not decided to set up a separate company for backing this kind of wrap, and it's likely that for the time being it won't be wrapping any deals of this kind." However, he added in the past that there have been a number of structured finance deals that have carried some form of insurance company support, but these are typically different than wraps seen in securitization transactions.

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