(The following statement was released by the rating agency)
May 30 - Moody's Investors Service announced today that it
has downgraded the ratings of eight classes of notes issued by
Bonifacius, Limited, and left on review for possible further
downgrade the rating of two classes of notes as follows:
Class Description: U.S. $1,625,000,000 Class A1-M Floating Rate
Senior Secured Notes Due 2047
Prior Rating: A3, on review for possible downgrade
Current Rating: Caa1, on review for possible downgrade
Class Description: U.S. $225,000,000 Class A1-Q Floating Rate
Senior Secured Notes Due 2047
Prior Rating: A3, on review for possible downgrade
Current Rating: Caa1, on review for possible downgrade
Class Description: U.S. $275,000,000 Class A1-J term loan made
pursuant to the Class A-1J Loan Agreement Prior Rating: Caa1, on
review for possible downgrade
Current Rating: Ca
Class Description: U.S. $125,000,000 Class A-2 Floating Rate
Senior Secured Notes Due 2047
Prior Rating: Caa2, on review for possible downgrade
Current Rating: Ca
Class Description: U.S. $115,000,000 Class A-3 Floating Rate
Senior Secured Notes Due 2047
Prior Rating: Caa3, on review for possible downgrade
Current Rating: Ca
Class Description: U.S. $33,000,000 Class B Floating Rate
Subordinate Secured Deferrable Notes Due 2047
Prior Rating: Ca
Current Rating: C
Class Description: U.S. $15,000,000 Class C Floating Rate
Subordinate Secured Deferrable Notes Due 2047
Prior Rating: Ca
Current Rating: C
Class Description: U.S. $16,000,000 Class D Floating Rate Junior
Subordinate Secured Deferrable Notes Due 2047
Prior Rating: Ca
Current Rating: C
Bonifacius, Limited is a collateralized debt obligation backed
primarily by a portfolio of structured finance securities. On
January 24, 2008, the transaction experienced an event of default
caused by a failure of the Class A Principal Coverage Ratio to be
greater than or equal to the required amount set forth in Section
5.1(h) of the Indenture dated July 27, 2007. That event of
default is continuing. Also, Moody's has received notice from the
Trustee that it has been directed by a majority of the
controlling class to declare the principal of and accrued and
unpaid interest on all the Senior Notes to be immediately due and
payable.
The rating actions taken today reflect continuing deterioration
in the credit quality of the underlying portfolio and the
increased expected loss associated with the transaction. Losses
are attributed to diminished credit quality on the underlying
portfolio.
As provided in Article V of the Indenture during the occurrence
and
continuance of an Event of Default, the Controlling Class may be
entitled to direct the Trustee to take particular actions with
respect to the Collateral. The severity of losses may depend on
the timing and choice of remedy to be pursued by the Controlling
Class. Because of this uncertainty, the rating of Class A-1M
Notes and Class A-1Q Notes issued by Bonfacius, Limited is on
review for possible further action.
Bonds
