Fitch Downgrades 1 Class Of REAB II Ltd.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has downgraded the following class of notes issued by REAB REAB Regional Energy Advisory Board II Ltd. (REAB II), a static cash-flow collateralized debt obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ): -- $11,375,000 class B subordinated secured principal only notes due 2032 to 'A-' from 'AA-'. In conjunction with the downgrade, Fitch has removed the class B notes from Rating Watch Negative. REAB II's class B notes were put on Rating Watch Negative on June 4, 2004 after an obligation in its portfolio, Conseco Finance Securitizations Corp., Manufactured Housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected Contract Senior/Subordinate Pass-Through Certificates, Series 2000-6, Class A-4 ('Conseco MH'), was lowered to 'A-'. All other obligations in the portfolio remain at 'AAA'. Given the size of REAB II's exposure to Conseco MH (approx. 14%), Fitch has downgraded the class B notes (which represent the first loss position in the capital structure) to a rating equal to that of Conseco MH. Fitch notes that Conseco MH has a short expected life and, to the extent it matures, the rating assigned to the class B notes will be positively impacted, given all other obligations are rated 'AAA' at the time. The rating on the class B notes addresses the ultimate payment of principal. Both distributions sourced from interest collections and principal collections are considered a repayment of principal. The class B notes will benefit from distributions of interest collections that will occur only after the class A notes are paid in full. This feature can potentially cause the rating of the class B notes to be higher than that of the lowest rated obligation in the portfolio. |
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