CHICAGO, May 19 /PRNewswire/ -- As reported today in Asset Sales Report,
Duff and Phelps Credit Rating Co. (DCR), a subsidiary of Fitch IBCA, Inc.,
received three anonymous letters relating to the operations of National
Century Financial Enterprises (NCFE). NCFE, a specialty finance company
headquartered in Dublin, Ohio, provides receivables-based financing to the
health care industry. Fitch IBCA, together with its subsidiary DCR, rates the
following issues affiliated with NCFE: NPF VI Health Care Receivables
Securitization Program, Series 1998-1, 1998-2, 1998-3, 1998-4 and 1999-1; NPF
XI Health Care Receivables Securitization Program, Series 1997-1; NPF XII
Health Care Receivables Securitization Program, Series 1999-1, 1999-2, 1999-3
and 2000-1; NPF-LP Healthcare Securitization Program; and NPF-WL Health Care
Receivables Securitization Program.
As the article indicates, DCR received two letters in April and July of
1999. These letters made no specific allegations but made general statements
alleging impropriety at NCFE. DCR made a series of inquiries related to the
letters and felt that no rating actions were warranted. The third letter,
which is more specific, was received through Asset Sales Report on May 10,
2000. Fitch IBCA and DCR are actively looking into the allegations described
in the third letter.
The company is cooperating with our inquiry.
At this time, Fitch IBCA and DCR have not found evidence to support the
allegations. In addition to discussions with the company, Fitch IBCA and DCR,
in the course of their research, have had discussions with Credit Suisse First
Boston, Deutsche Bank, Ascendant Capital and Paine Webber, who have acted as
investment bankers or advisors on
NCFE's various transactions. Fitch IBCA and DCR will speak with the
company's auditors next week and will continue to gather information related
to the inquiry. Fitch IBCA and DCR expect the inquiry to be completed within
the next few weeks and will inform investors if any action will be required.
Finally, Fitch IBCA and DCR are aware of the two lawsuits mentioned in the
article. The lawsuits do not appear to be connected with the allegations in
the above-mentioned letters. Fitch IBCA and DCR are looking into the
materiality of these lawsuits to determine if any rating actions are
warranted.
For more information, visit DCR's Web site at http://www.dcrco.com.
DCR's research is also available on Bloomberg at DCR, FirstCall's
BondCall Direct/Research Direct at http://www.firstcall.com and Multex at
http://www.multex.com, as well as through other third-party providers.
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
CONTACT:
NY - Kevin Duignan, 212-908-0630, Sandy
Claghorn, 212-908-0615, Chicago - Jeff Orr, 312-368-3335
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