Fitch Downgrades 5 and Affirms 2 Classes of Acacia CDO 6, Ltd.; Withdraws Ratings
KEY RATING DRIVERS
These rating actions are a direct result of the sale and liquidation of the Acacia 6 portfolio on July 19, 2016. Approximately $39.8 million of net sale proceeds were received from the liquation and a final distribution was made to noteholders on Aug. 31, 2016. The class A-1 noteholders received interest payments of approximately $148,000 and remaining proceeds of $39.7 million were applied towards a partial repayment of the class A-1 notes principal balance. No other class of notes received distributions.
Acacia 6 entered an event of default on May 18, 2009. On June 8, 2009, a majority of the controlling class voted to accelerate the maturity. Most recently, on June 24, 2016, at least 66 2/3% of the controlling class directed the sale and liquidation of the collateral.
RATING SENSITIVITIES
Not applicable as the ratings are being withdrawn.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third party due diligence was reviewed in relation to this rating action.
Fitch has downgraded and withdrawn the following ratings:
--$10,257,111 class A-1 notes to 'Dsf' from 'Csf';
--$7,424,914 class C notes to 'Dsf' from 'Csf';
--$3,600,859 class D notes to 'Dsf' from 'Csf';
--$1,938,255 class E-1 notes to 'Dsf' from 'Csf';
--$11,983,979 class E-2 notes to 'Dsf' from 'Csf'.
Fitch has affirmed and withdrawn the following ratings:
--$16,168,275 class A-2 notes at 'Dsf';
--$29,427,331 class B notes at 'Dsf'.
Fitch did not rate the preferred shares.
The bonds' underlying rating is 'AA-' with a Stable Outlook. For more information, see Fitch's Sept. 14, 2016 press release, 'Fitch Rates Port Arthur ISD (TX) $25.2MM Series 2016D and $52.5MM 2016E ULT Rfdg Bonds 'AA-''.
RATING SENSITIVITIES
The 'AAA' rating based on the Texas Permanent School Fund (PSF) guaranty is sensitive to changes in the programmatic rating of the PSF.
Комментарии