OREANDA-NEWS. Fitch Ratings affirms four classes of Capital Trust RE CDO 2004-1 (Capital Trust 2004-1). A detailed list of rating actions follows at the end of this release.

Fitch is considering withdrawing the ratings on this transaction due to the lack of relevancy to the agency's coverage combined with commercial reasons. The notes are significantly under collateralized. As reflected in the notes' current ratings at 'Dsf' and 'Csf', default has occurred or is inevitable at legal maturity or earlier.

While Fitch believes that investors are no longer interested in the agency's coverage of this transaction, the agency will allow investors the opportunity to request the continuing coverage. Investors are encouraged to contact the analysts indicated at the bottom of this press release within 30 calendar days. At the end of that period, Fitch will evaluate any responses and will make a final determination with respect to the withdrawal.

KEY RATING DRIVERS

Fitch's actions reflect both the severely undercollateralized notes as well as the collateralized debt obligations (CDOs) inability to make timely interest payments to class D. The CDO's liabilities currently exceed collateral by over \$46 million. Only three assets remain in the highly concentrated pool, including two subordinate interests in real-estate owned (REO) properties (99%) and one defaulted commercial mortgage-backed securities (CMBS) bond (1%). All three assets have de minimis to no recoveries expected.

While no interest proceeds are being paid to the assets, a limited amount of principal has been received from amortization of the CMBS bond. Proceeds continue to be insufficient to pay timely interest to the class D notes, resulting in an event of default as of May 2014.

Capital Trust 2004-1 is a commercial real estate (CRE) CDO managed by CT Investment Management Co., LLC (CTIMCO).

RATING SENSITIVITIES
Classes E, F, and G are subject to further downgrade to 'Dsf' should the classes default at legal maturity or earlier.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:
--\$9,664,818 class D at 'Dsf'; RE 0%;
--\$3,241,000 class E at 'Csf'; RE 0%;
--\$6,481,000 class F at 'Csf'; RE 0%;
--\$16,204,000 class G at 'Csf'; RE 0%.

Classes A-1, A-2, B, and C have paid in full. Fitch does not rate classes H, J and Preferred Shares.