Class C through F and X Trust Certificates affected
Tokyo, January 11, 2011 -- Moody's Japan K.K has withdrawn the ratings for the Class C through
Class F and Class X trust certificates issued by CSTR-1 and CSTR-2
Trusts for business reasons.
The complete rating actions follow.
CSTR-1 Trust
Class C, Ba2 (sf) rating withdrawn; previously on December
1, 2010 downgraded to Ba2 (sf) from Baa2 (sf)
Class D, Caa1 (sf) rating withdrawn; previously on December
1, 2010 downgraded to Caa1 (sf) from B1 (sf)
Class X, Aaa (sf) rating withdrawn; previously on December
1, 2010 confirmed at Aaa (sf)
CSTR-2 Trust
Class E, Caa2 (sf) rating withdrawn; previously on December
1, 2010 downgraded to Caa2 (sf) from B2 (sf)
Class F, Caa3 (sf) rating withdrawn; previously on December
1, 2010 downgraded to Caa3 (sf) from B3 (sf)
Deal Name: CSTR-1 Trust and CSTR-2 Trust
Class: Class A through D and Class X Trust Certificates (CSTR-1
Trust)
Class E and F Trust Certificates (CSTR-2 Trust)
Issue Amount (initial): JPY 12.55 billion (CSTR-1
Trust), JPY 4.0 billion (CSTR-2 Trust)
Dividend: Floating
Issue Date (initial): July 4, 2006
Final Maturity Date: July, 2012
Underlying Asset (initial): Four senior/subordinate non-recourse
loans backed by five property trust certificates
Originator/Entrustor: Credit Suisse First Boston Principal Investments
Limited, Tokyo (as of the issue date)
Arranger: Credit Suisse Securities (Japan) Limited
CSTR-1 Trust and CSTR-2 Trust, effected in July 2006,
represent the securitization of four non-recourse loans.
The Originator entrusted the loans to the Asset Trustee and received the
Class A through D and X trust certificates (CSTR-1 Trust) and Class
E and F trust certificates (CSTR-2 Trust), and then sold
them to investors through the Arranger. The trust certificates
are rated by Moody's. The Class A (Aaa (sf)) and B (Aa2 (sf))
trust certificates have already been redeemed.
In this transaction, any principal payments at maturity, or
through amortizations, prepayments resulting from the sale of the
underlying properties, or refinancing of the loans are allocated
pro-rata based on the balance of CSTR-1 and CSTR-2
first. Sequential payments are then applied to the CSTR-1
Trust and the pro-rata payments to the CSTR-2. Sequential
payments from the most senior class are applied; recovery collection,
in the event of default; and fast pay, in the event of a breach
of the DSCR trigger. The losses incurred by defaulted loans are
allocated in reverse sequential order from the most subordinate class
of the trust certificates.
RATING RATIONALE
Moody's Japan K.K. has withdrawn the credit rating for its
own business reasons. Please refer to Moody's Guidelines for the
Withdrawal of Ratings on its Web site, www.moodys.co.jp.
REGULATORY DISCLOSURES
For an explanation of the (sf) indicator, please see "Moody's
Structured Finance Rating Scale" on www.moodys.com.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Credit ratings are Moody's current opinions of the relative future credit
risk of entities, credit commitments, or debt or debt-like
securities. Moody's defines credit risk as the risk that an entity
may not meet its contractual, financial obligations as they come
due and any estimated financial loss in the event of default. Credit
ratings do not address any other risk, including but not limited
to: liquidity risk, market value risk, or price volatility.
Credit ratings do not constitute investment or financial advice,
and credit ratings are not recommendations to purchase, sell,
or hold particular securities. No warranty, express or implied,
as to the accuracy, timeliness, completeness, merchantability
or fitness for any particular purpose of any such rating or other opinion
or information is given or made by Moody's in any form or manner whatsoever.
The credit risk of an issuer or its obligations is assessed based on information
received from the issuer or from public sources. Moody's may change
the rating when it deems necessary. Moody's may also withdraw the
rating due to insufficient information, or for other reasons.
Moody's Japan K.K. is a credit rating agency registered
with the Japan Financial Services Agency and its registration number is
FSA Commissioner (Ratings) No. 2. The Financial Services
Agency has not imposed any supervisory measures on Moody's Japan K.K.
in the past year.
Please see ratings tab on the issuer/entity page on the Moody's website
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Credit Ratings were fully digitized and accurate
data may not be available. Consequently, Moody's provides
a date that it believes is the most reliable and accurate based on the
information that is available to it. Please see the ratings disclosure
page on the Moody's website for further information.
Please see the Credit Policy page on the Moody's website for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Tokyo
Meishuku Ohno
Analyst
Structured Finance Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
Tokyo
Koji Kumamaru
MD - Structured Finance
Structured Finance Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
Moody's Japan K.K.
Atago Green Hills Mori Tower 20fl
2-5-1 Atago, Minato-ku
Tokyo 105-6220
Japan
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
Moody's withdraws ratings on 5 classes of CSTR-1 and CSTR-2 Trusts (CMBS)