Fitch Ratings Affirms 1 Class of RHYNO CBO 1997-1, Ltd./Corp.CHICAGO -- 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. affirms the rating of one class of notes issued by RHYNO CBO CBO See: Collateralized Bond Obligation. 1997-1, Ltd./Corp. (RHYNO CBO 1997-1), which closed Aug. 19, 1997. The following rating actions are effective immediately: -- $106,449,142 class A-2 notes affirmed at 'AAA'. The rating for the $127,000,000 class A-3 remains at 'CC'. In addition, the rating for the $37,000,000 class B remains at 'C'. RHYNO CBO 1997-1 is 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) managed by Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. Asset Management. The collateral of RHYNO CBO 1997-1 is composed of high yield bonds invested in corporate bonds and emerging markets corporate debt. Payments are made semi-annually in March and September and the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. period ended in September 2001. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and its portfolio management strategy. 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. the Aug. 2, 2004 trustee report, the portfolio includes $49.74 million (26.18%) in defaulted assets. The deal also contains 34.99% assets rated 'CCC+' or below, excluding defaults. The class A OC test is failing at 86.1% with a trigger of 141% and the class B OC test is failing at 73.9% with a trigger of 120%. This transaction is currently in an event of default due to the failure to maintain an OC test at least equal to 90% of the OC trigger. This event has not been cured and the trading ability of the current asset manager has been limited. The ratings of the class A-2 and A-3 notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the stated maturity Stated maturity For the CMO tranche, the date the last payment would occur at zero CPR. date. The rating of the class B notes addresses the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the stated maturity date. Fitch will continue to monitor RHYNO CBO 1997-1 closely to ensure accurate ratings. Deal information and historical data on RHYNO CBO 1997-1 is available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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