Moody's downgrades Neptune CDO III notes

(The following statement was released by the rating agency)

May 19 - Moody's Investors Service announced today that it
has downgraded and placed on review for possible further
downgrade the ratings on the following notes issued by Neptune
CDO III, Ltd.
Class Description: U.S. $270,000,000 Class A-1 Floating Rate
Senior Secured Notes Due 2046
Prior Rating: Aa1, on review for possible downgrade
Current Rating: Ba3, on review for possible downgrade
Class Description: U.S. $42,000,000 Class A-2 Floating Rate
Senior Secured Notes Due 2046
Prior Rating: A2, on review for possible downgrade
Current Rating: Caa2, on review for possible downgrade
Class Description: U.S. $36,000,000 Class A-3 Floating Rate
Senior Secured Notes Due 2046
Prior Rating: Baa2, on review for possible downgrade
Current Rating: Caa3, on review for possible downgrade
Additionally, Moody's downgraded the following notes:
Class Description: U.S. $14,000,000 Class B Floating Rate
Subordinate Secured Deferrable Notes Due 2046
Prior Rating: Ba1, on review for possible downgrade
Current Rating: Ca
Class Description: U.S. $19,000,000 Class C Floating Rate Junior
Subordinate Secured Deferrable Notes due 2046
Prior Rating: Ba2, on review for possible downgrade
Current Rating: C
According to Moody's, the rating actions reflect increased
deterioration in the credit quality of the underlying portfolio.