Fitch Ratings Downgrades 6 Classes From BEA CBO 1998-1 & 1998-2 Ltd.Business Editors CHICAGO--(BUSINESS WIRE)--April 19, 2002 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 ratings of four classes issued by BEA BEA - Basic programming Environment for interactive-graphical Applications, from Siemens-Nixdorf. CBO CBO See: Collateralized Bond Obligation. 1998-1 Ltd. and two classes issued by BEA CBO 1998-2 Ltd. Both are collateralized bond obligations 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. (CBOs) backed predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. by high yield bonds. The following securities have been downgraded and remain on Rating Watch Negative:
BEA CBO 1998-1 Ltd.
--$182,150,000 class A-2A notes to 'BBB-' from 'AAA';
--$31,844,406 class A-2B notes to 'BBB-' from 'AAA'.
The following securities have been downgraded and removed from
Rating Watch Negative:
BEA CBO 1998-1 Ltd.
--$26,000,000 class A-3 notes from 'BB' to 'CCC';
--$45,000,000 class B notes to 'C' from 'CCC'.
BEA CBO 1998-2 Ltd.
--$20,000,000 class A-3 notes to 'CCC-' from 'BB-';
--$22,000,000 class B-1 notes to 'C' from 'CCC-'.
As of the April 2, 2002 trustee report, BEA CBO 1998-1 Ltd.'s collateral included $81.3 million (25.8%) of defaulted assets. Excluding defaults, the deal holds 48.6% of assets rated 'CCC+' or below. The A OC test is failing at 94.9% with a trigger of 118% and the BOC (Bell Operating Company) One of 22 companies that was formerly part of AT&T and later organized into seven regional companies. See RBOC. test is failing at 79% with a trigger of 104%. As of the April 2, 2002 trustee report, BEA CBO 1998-2 Ltd.'s collateral includes $61.6 million (22.8%) of defaulted assets. Excluding defaults, the deal holds 37.2% of assets rated 'CCC+' or below. The A OC test is failing at 97.7% with a trigger of 115% and the B OC test is failing at 85.5% with a trigger of 104%. In reaching its rating actions, Fitch reviewed the results of its cash flow model runs after running several different stress scenarios. Fitch will continue to monitor these transactions. Deal information and historical data on BEA CBO 1998-1 Ltd. and BEA 1998-2 Ltd. is available on Fitch Ratings' web site at 'www.fitchratings.com'. |
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