Moody's takes action on Kleros Preferred Funding II, Ltd.

(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 Kleros
Preferred Funding II, Ltd.
Class Description: U.S.$250,000 Class A-1V First Priority Senior
Secured Voting Floating Rate Notes Due December 2042
Prior Rating: Aaa
Current Rating: Aa2, on review for possible downgrade
Class Description: U.S.$869,750,000 Class A-1NV First Priority
Senior Secured Non-Voting Floating Rate Notes Due December 2042
Prior Rating: Aaa
Current Rating: Aa2, on review for possible downgrade
Class Description: U.S.$60,000,000 Class A-2 Second Priority
Senior Secured Floating Rate Notes Due December 2042
Prior Rating: Aaa
Current Rating: Baa2, on review for possible downgrade
Class Description: U.S.$34,000,000 Class B Third Priority Senior
Secured Floating Rate Notes Due December 2042
Prior Rating: Aa2
Current Rating: Ba2, on review for possible downgrade
Class Description: U.S.$8,000,000 Class C Fourth Priority Senior
Secured Floating Rate Notes Due December 2042
Prior Rating: Aa3
Current Rating: B1, on review for possible downgrade
Additionally, Moody's downgraded the following notes:
Class Description: U.S.$9,650,000 Class D Fifth Priority
Mezzanine Secured Deferrable Floating Rate Notes Due December 2042
Prior Rating: A2, on review for possible downgrade
Current Rating: Ca
Class Description: U.S.$11,000,000 Class E Sixth Priority
Mezzanine Secured Deferrable Floating Rate Notes Due December 2042
Prior Rating: Baa2, on review for possible downgrade
Current Rating: Ca
According to Moody's, the rating actions reflect increased
deterioration in the credit quality of the structured finance
securities.