Fitch Ratings has downgraded two classes of notes from Taberna Preferred Funding IV, Ltd./Inc. (Taberna IV). A full list of rating actions follows at the end of this press release.
The downgrades incorporate the transaction's non-payment of the full interest due to the class B-1 and B-2 notes (collectively, the class B notes) on the Aug. 5, 2009 payment date. All available proceeds went to pay the class A notes' interest in full, and the remaining interest proceeds were exhausted when paying the class B notes. The class B notes received only 32.1% of their $481,477 interest due. This partial interest payment is considered a payment default.
Taberna IV entered into an Event of Default on Aug. 11, 2009 as a result of the partial non-payment of interest to the class B notes.
These notes are backed by trust preferred securities (TruPS) and subordinated debt issued by subsidiaries of real estate investment trusts (REITs), real estate operating companies, homebuilders and specialty finance companies, as well as senior debt securities and commercial mortgage-backed securities (CMBS).
Fitch has taken the following actions:
--$81,450,000 class B-1 notes downgraded to 'D' from 'CCC';
--$7,000,000 class B-2 notes downgraded to 'D' from 'CCC'.
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, Chicago
Johann Juan, 312-368-3339
Derek Miller,
312-368-2076
Kevin Kendra, 212-908-0670, New York
or
Media
Relations:
Sandro Scenga, 212-908-0278, New York
Email: sandro.scenga@fitchratings.com