Fitch Downgrades Remaining Rated Class of Talmage 2006-4 to 'D'
KEY RATING DRIVERS
No assets remain in the transaction. Since the last rating action, all assets have been sold or paid off. The realized losses of $33.2 million were in line with Fitch's expectations.
The downgrade of the class H note follows the resolution of the last assets held by the CDO, an August 2016 sale of three $33.2 million B-notes secured by Resorts International for a de mininis recovery, as expected. Approximately $200,000 remains in an expense reserve, which will be applied towards the discharge of the Indenture to cover any additional expenses, any remaining funds will be paid to the notes.
The remaining obligation to class H is $608,067. There are insufficient funds available to pay the balance of this note; as the maximum amount available from the expense reserve would be $200,000.
RATING SENSITIVITIES
The defaulted rating will be automatically withdrawn within 11 months of the date of this rating action.
DUE DILIGENCE USAGE
No third party due diligence was provided in relation to this rating action.
Fitch has downgraded the following rating:
--$608,067 class H notes to 'D' from 'C'.
Classes S and A-1 through G have paid in full. Fitch does not rate classes J, K, and the Preferred Shares.
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