Fitch Downgrades 2 Classes of South Street CBO 2000-1, 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 downgrades the ratings on two classes of notes issued by South Street CBO CBO See: Collateralized Bond Obligation. 2000-1, Ltd. (South Street 2000-1), a collateralized bond obligation Collateralized Bond Obligation (CBO) Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. (CBO) backed by high yield bonds. The rating on one class of notes is affirmed, three classes of notes are revised, and the ratings on two classes of notes remain unchanged. --$27,594,496 class A-2L notes affirmed at 'AAA'; --$15,000,000 class A-3L notes downgraded to 'BB-' from 'BBB-'; --$30,000,000 class A-3 notes downgraded to 'BB-' from 'BBB-'; --$20,000,000 class A-4L notes revised to 'CC/DR4' from 'CC/DR3'; --$8,000,000 class A-4A notes revised to 'CC/DR4' from 'CC/DR3'; --$10,000,000 class A-4C notes revised to 'CC/DR4' from 'CC/DR3'; --$15,000,000 class B-1 notes remain at 'C/DR6'; --$4,198,658 class B-2 notes remain at 'C/DR6'. Class A-1L notes has been paid in full. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its October 17, 2006 trustee report, an additional $8.3 million par amount of assets have defaulted since the last review on January 25, 2005. Since last review, the senior class A overcollateralization (OC) test, which includes the class A-2L, class A-3L and class A-3 notes, is passing at 137.5% versus 133.2% with a trigger of 120%. The class A OC test, class B OC test and additional coverage test are still failing and have declined further since the last review and are currently at 89%, 70% and 54.26%, versus last review of 99.96%, 86.59%, and 78.06, with a trigger of 110%, 103% and 108%, respectively. Furthermore, the class A IO amount diverts interest proceeds away from the class A OC test to pay interest and principal on the class B-2 notes. The downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of the class A-3L and class A-3 notes reflects the continued deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of the portfolio. In addition, Fitch has reviewed the results of cash flow model runs, incorporating several different default and interest rate stress scenarios. Also, Fitch discussed with Colonial Management Associates, Inc., the investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , their expectations and opinions of the portfolio. Deal information and historical data on South Street CBO 2000-1, Ltd. is available on the 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. web site at www.fitchratings.com. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 4, 2006 and also available at www.derivativefitch.com. Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.derivativefitch.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto. |
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