Fitch Ratings has downgraded, assigned a Distressed Recovery (DR) rating, and withdrawn the ratings on all seven classes of notes issued by LCM VII Ltd. The following rating actions are effective immediately:
--$126,000,000 class A-1 revolving notes 'CCC' are paid in full (PIF);
--$250,000,000 class A-2 term notes to 'C/DR2' from 'CCC';
--$20,000,000 class B notes to 'C/DR6' from 'CCC';
--$42,763,000 class C notes to 'C/DR6' from 'CCC';
--$29,040,000 class D notes to 'C/DR6' from 'CCC';
--$937,000 class E-1 notes to 'C/DR6' from 'CC';
--$937,000 class E-2 notes to 'C/DR6' from 'CC'.
All classes are withdrawn.
LCM VII was a cash flow collateralized loan obligation (CLO) with a market value termination trigger. The liquidation trigger breached in October 2008 and was uncured, resulting in an event of default and subsequent liquidation of the portfolio. Fitch has applied DR ratings based upon the most recent notice of distribution received from the trustee. The timing and amount of future distributions, if any, are uncertain. Any significant payments would affect ultimate recovery on the notes and their DR ratings.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
Fitch Ratings, New York
Jenny Story, 212-908-0302
Louis
Lazzara, 212-908-0284
Taka Ushiroda, 212-908-0881
Sandro
Scenga, 212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com