Fitch: No Rating Impact on Proposed Anthracite CDO II and III Swap Terminations

NEW YORK--()--Fitch Ratings has been notified by Blackrock Financial Management, Inc., as collateral administrator of Anthracite CDO III Ltd./Corp. (Anthracite CDO III) and Anthracite CDO II Ltd./Corp. (Anthracite CDO II), of a proposal to fully terminate the interest rate swaps in both transactions.

The counterparty has stated that there will be no breakage costs for either termination, other than accrued interest due. The ratings of the Anthracite CDO II and Anthracite CDO III transactions will not be affected by the proposed terminations.

Anthracite CDO II is a commercial real estate collateralized debt obligation (CRE CDO) that closed on Dec. 10, 2002. The collateral is composed of 16 assets from 13 obligors of which 92.3% are commercial mortgage backed securities (CMBS) and 7.7% commercial real estate loans (CREL).

Anthracite CDO III is a CRE CDO that closed on March 30, 2004. Currently, the portfolio is composed of 22 securities from 15 issuers of which 76.4% are CMBS, 14.1% CMBS rake bonds or credit tenant leases (CTL) classified as CREL, and 9.5% real estate investment trusts (REITs).

Fitch encourages issuers and arrangers to disclose publicly, as early as possible, any proposed changes and amendments to transaction structures and documents to all interested parties. This will enable investors to conduct their own analysis in a timely fashion.

Fitch is not a party to the transaction and therefore does not provide consent or approval, as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the proposed amendment is executed either in part or in its entirety.

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' (Sept. 13, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718027

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Contacts

Fitch Ratings
Matthew McGowan
Associate Director
+1-212-908-0733
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Matthew McGowan
Associate Director
+1-212-908-0733
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com