TEXT-S&P Raises Four Apidos CDO I Ratings, Affirms One
-- We raised our ratings on the class A-1, A-2, B, and C notes from Apidos CDO I, a U.S. CLO transaction.
-- We affirmed our rating on the class D notes from the same transaction.
-- The upgrades primarily reflect paydowns to the class A-1 notes since our last upgrade in March 2012.
NEW YORK (Standard & Poor's) Nov. 28, 2012--Standard & Poor's Ratings Services today raised its ratings on the class A-1, A-2, B, and C notes from Apidos CDO I, a U.S. collateralized loan obligation (CLO) managed by Apidos Capital Management LLC. At the same time, we affirmed our rating on the class D notes (see list).
The upgrades reflect paydowns to the class A-1 notes since March 2012. The affirmed ratings reflect our belief that the credit support available is commensurate with the current rating level.
Apidos CDO I Ltd. ended its reinvestment period on July 18, 2011. Since our last rating action, the class A-1 notes have paid down more than $92 million and have a current outstanding balance of $148.7 million, which is about 56% of their original balance.
As a result of the paydowns, the overcollateralization (O/C) ratios have improved significantly. The senior O/C ratio, the class A-2 O/C, has improved 7.3% while the subordinate class D O/C ratio has improved 1.3%.
We note that according to the Oct. 16, 2012, trustee report, the transaction held $3.15 million defaulted assets, slightly higher than the $2.21 million noted in the Feb. 21, 2012, trustee report, which we used for our March actions.
We did not upgrade the class D notes at this point primarily because the transaction is subject to potential market value risks due to its exposure to long-dated securities. The transaction currently has approximately $7.66 million in underlying collateral that matures after the legal final maturity of the transaction.
Standard & Poor's will continue to review whether, in its view, the ratings assigned to the notes remain consistent with the credit enhancement available to support them and take rating actions as it deems necessary.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at ""
RELATED CRITERIA AND RESEARCH
-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
-- Principles Of Credit Ratings, Feb. 16, 2011
-- Update To Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs, Sept. 17, 2009
-- Application of Supplemental Tests For Rating Global Corporate Cash Flow And Synthetic CDOs, Sept. 17, 2009
-- General Criteria: Understanding Standard & Poor's Rating Definitions, June 3, 2009
-- CDO Spotlight: General Cash Flow Analytics For CDO Securitizations, Aug. 25, 2004
Apidos CDO I
Class To From
A-1 AAA (sf) AA+ (sf)/Watch Pos
A-2 AAA (sf) AA+ (sf)/Watch Pos
B AA- (sf) A (sf)/Watch Pos
C BBB+ (sf) BBB- (sf)/Watch Pos
D B+ (sf) B+ (sf)/Watch Pos
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