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TEXT-Fitch takes action on U.S. corporate synthetic CDOs
February 14, 2013 / 7:40 PM / 5 years ago

TEXT-Fitch takes action on U.S. corporate synthetic CDOs

Feb 14 - Fitch Ratings has taken various rating actions on 19 U.S. corporate
synthetic collateralized debt obligation (CDO) transactions. The affirmations
affect 65 ratings from 19 transactions. One class of notes was downgraded to
'Dsf' due to principal losses sustained following credit event settlements.

The corporate synthetic CDO transactions have largely performed in line with
Fitch's expectations since February 2012. Fitch also considered the impact of a
reduction in credit enhancement levels in 11 CDOs due to exposure to the
Residential Capital, LLC credit event in June 2012. The affirmations for all 19
transactions reflect sufficient support for the ratings driven by an adequate
level of available credit enhancement, relatively stable performance of the
low-rated assets in portfolios and decreased time to maturity.

The rating actions include 29 classes from nine transactions affirmed with
Stable Outlooks and one class affirmed with a Negative Outlook. Outlooks were
revised from Negative to Stable on five classes from three transactions. Fitch
assigns Rating Outlooks to notes rated at or above the 'Bsf' rating category.
Fitch's Ratings Outlook indicates the likely direction of any rating change over
a one- to two-year period.

A spreadsheet detailing Fitch's rating actions for the public tranches is
available on www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

The information used to assess these ratings was sourced from transaction
trustee reports, swap counterparties and the public domain.

Applicable Criteria & Related Research:
--'Global Rating Criteria for Corporate CDOs' (Aug. 8, 2012);
--'Global Structured Finance Rating Criteria' (June 6, 2012).

Applicable Criteria and Related Research: Fitch Takes Action on U.S. Corporate
Synthetic CDOs

Global Rating Criteria for Structured Finance CDOs
Global Structured Finance Rating Criteria

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