New York, November 20, 2009 -- Moody's Investors Service announced today that it has downgraded the ratings
of 14 tranches contained within 10 US Structured Finance CDOs.
The tranches affected by today's actions are from CDOs that have experienced
an Event of Default and in each case the Trustee has been directed to
liquidate the collateral as a post-event-of-default
remedy. Moody's has been notified by the respective Trustee in
each of these cases that a final distribution of liquidation proceeds
has taken place (except for retention of a small amount of residual funds
in certain cases).
The rating actions taken today reflect the final liquidation distribution
and are indicative of the loss given default associated with the downgraded
tranches.
Issuer: Arca Funding 2006-I, Ltd.
U.S.$99,500,000 Class II Funded Senior
Notes Due 2046, Downgraded to C; previously on April 7,
2008 Downgraded to Ca
U.S.$59,500,000 Class III Funded Senior
Notes Due 2046, Downgraded to C; previously on April 7,
2008 Downgraded to Ca
U.S.$17,000,000 Class IV Funded Senior
Notes Due 2046, Downgraded to C; previously on April 7,
2008 Downgraded to Ca
Issuer: Athos Funding, Ltd.
U.S. $40,000,000 Class A-1 Floating
Rate Notes Due 2043, Downgraded to C; previously on December
17, 2008 Downgraded to Ca
U.S. $28,000,000 Class A-2 Floating
Rate Notes Due 2043, Downgraded to C; previously on June 11,
2008 Downgraded to Ca
Issuer: Kent Funding, Ltd.
U.S. $60,000,000 Class A-1 Notes,
Downgraded to C; previously on April 24, 2009 Downgraded to
Ca
Issuer: Kleros Preferred Funding VI, Ltd.
U.S.$1,000,000,000 Class A-1S-1A
First Priority Senior Secured Delayed Draw Floating Rate Notes due May
2047, Downgraded to C; previously on September 23, 2008
Downgraded to Ca
U.S.$1,400,000,000 Class A-1S-1B
First Priority Senior Secured Floating Rate Notes due May 2047,
Downgraded to C; previously on September 23, 2008 Downgraded
to Ca
Issuer: LOCHSONG, LTD.
U.S.$ 12,100,000 Class S Floating Rate
Notes Due 2010, Downgraded to C; previously on April 24,
2009 Downgraded to Ca
Issuer: Longshore CDO Funding 2006-2, Ltd.
U.S. $870,000,000 Class A-1 Floating
Rate Notes Due 2046, Downgraded to C; previously on September
23, 2008 Downgraded to Ca
Issuer: Raffles Place II Funding, Ltd.
U.S.$600,000,000 Class A1M Floating Rate
Notes Due 2047, Downgraded to C; previously on September 23,
2008 Downgraded to Ca
Issuer: Scorpius CDO, Ltd.
U.S. $975,000,000 Class A-1 First
Priority Senior Secured Floating Rate Notes due November 2046, Downgraded
to C; previously on September 23, 2008 Downgraded to Ca
Issuer: TOPANGA CDO, LTD.
U.S.$49,000,000 Class A-1 Floating
Rate Senior Secured Notes Due 2045, Downgraded to C; previously
on April 24, 2009 Downgraded to Ca
Issuer: Tierra Alta Funding I, Ltd.
Class F Notes, Downgraded to C; previously on April 24,
2009 Downgraded to Ca
Moody's had previously monitored these transactions using primarily the
methodology and its supplements for ABS CDOs as described in Moody's Special
Report below:
- Moody's Approach to Rating SF CDOs (August 2009)
Other methodologies and factors that may have been considered in the process
of rating this issuer can also be found in the Rating Methodologies sub-directory
on Moody's website. In addition, Moody's publishes a weekly
summary of structured finance credit, ratings and methodologies,
available to all registered users of our website, at www.moodys.com/SFQuickCheck.
New York
Stephen Lioce
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Sindhu Veluri
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's downgrades 14 tranches from 10 SF CDOs that have completed liquidation