NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken the following rating action on one class of notes issued by Tricadia CDO 2003-1, Ltd. (Tricadia) as follows:
--$3,699,917 class A-4L notes upgraded to 'AAAsf' from 'CCCsf'; assigned Outlook Stable.
KEY RATING DRIVERS
The upgrade and Stable Outlook reflects Fitch's view that the remaining balance of the class A-4L notes will be paid in full on the next payment date in November 2013.
Since Fitch's last rating action in October 2012, the classes A-1LA, A-1LB, A-2L, and A-3L have all been paid in full. Subsequently, the class A-4L notes became the senior most class of notes in the capital structure and, since the August 2013 payment date received approximately $8.3 million in paydowns, or 69.2% of their previous balance. The current outstanding balance is fully covered by the $7.1 million of proceeds available in the principal collection account.
Fitch believes that further negative migration and additional defaults, as well as increasing concentration in assets of a weaker credit quality would not result in a rating downgrade of these notes.
Tricadia is a static structured finance collateralized debt obligation (SF CDO) monitored by Tricadia CDO Management, LLC, which closed Jan. 14, 2004. As of the Sept. 27, 2013 Trustee report, the portfolio comprises corporate CDOs (89.9%) and SF CDOs (10.1%) from primarily 2002 through 2006 vintage transactions.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'Global Rating Criteria for Structured Finance CDOs' (Sep. 12, 2013).