Updating Merrill Lynch's credit rating
This update relates to the Product Disclosure Statement dated 7 May 2008 and Supplementary Product Disclosure Statement dated 16 May 2008 (together the PDS) issued by Macquarie Financial Products Management Limited (ABN 38 095 135 694, AFSL 237847) (Issuer or MFPML) in respect of the June 2008 offer of the Instreet Enterprise Trusts.
The PDS discloses that the credit rating of Merrill Lynch & Co., Inc* (“Merrill Lynch”) as A+ in Section 5.3.1 and Section 9.2.3. In addition the PDS states that if Merrill Lynch & Co., Inc does not have an S&P rating of at least A-/Stable/A-2 as at the Offer Close date, the Issuer will not accept any applications for the Instreet Enterprise Trusts. Further the PDS also discloses that this credit rating may change after the Offer Close date and throughout the Term.
Standard & Poor’s Ratings Services (“S&P Ratings Services”) has lowered its rating of Merrill Lynch from A+ to A. As this rating is above A-/Stable/A-2 the Issuer will continue to accept applications.
The S&P Ratings Services’ report entitled "Merrill Lynch & Co. Inc. Ratings Lowered To 'A/A-1' From 'A+/A-1'; Outlook Negative" dated June 2, 2008 (“S&P Report”) contains S&P Ratings Services’ rationale for its lower rating and the outlook for Merrill Lynch.
The S&P Report is available by clicking here or by contacting S&P on 1300 792 553.
*Merrill Lynch International is the Hedge Counterparty and is guaranteed by Merrill Lynch & Co., Inc.
Instreet Investment Limited (Instreet) ABN 44 128 813 016 is the consultant to financial advisers for investors into the Instreet Enterprise Trusts and will coordinate your investment in Units in the Instreet Enterprise Trusts. Macquarie Financial Products Management Limited ABN 38 095 135 694, AFSL 237847 (MFPML) is the responsible entity of and issuer of units in the Instreet Global Gold Trust (Global Gold Trust); Instreet Emerging Markets Trust (Emerging Markets Trust); and Instreet Focus Momentum Trust (Focus Momentum Trust) (collectively, Instreet Enterprise Trusts). Macquarie Financial Products Management Limited can be contacted on 1800 080 033, or write to GPO Box 4294 Sydney NSW 1164.
An invitation to apply for units in each of the Instreet Enterprise Trusts will be made by MFPML in a Product Disclosure Statement to be dated 7 May 2008 (PDS). The PDS will be available from the website, or Level 34, 50 Bridge St, Sydney or by phoning (02) 8216 0804. This information is general advice and does not take account of an investor’s objectives, financial situation or needs. Before acting on this general advice, investors should therefore consider the appropriateness of the advice having regard to their situation. Investors should consider the PDS in deciding whether to acquire, or continue to hold, an investment in the Instreet Enterprise Trusts. We recommend investors obtain financial, legal and taxation advice before making any financial investment decisions. The loans are offered by a Macquarie Group company and are subject to approval - continue
