KEY RATING DRIVERS
The rating downgrade reflects the partial default in payment of interest to the class B notes.
Kodiak I entered an Event of Default on
There are multiple outstanding Hedge Agreements in Kodiak I that are out of the money and require a significant payment by the CDO to the Swap Counterparty each quarter.
In the event that currently distressed securities resume payment of interest in an amount sufficient to cure the class B notes' interest shortfall and assure sufficient level of interest coverage going forward, and as the Hedge Agreements reach maturity, Fitch is likely to upgrade these notes to the appropriate level at that time.
Kodiak I is a trust preferred collateralized debt obligation (TruPS CDO), which closed on
Additional information is available at www.fitchratings.com.
The information used to assess these ratings was sourced from trustee reports, collateral manager reporting Web sites and the public domain.
Applicable Criteria and Related Criteria:
--'Global Rating Criteria for Structured Finance CDOs' (
Global Rating Criteria for Structured Finance CDOs
Primary Surveillance Analyst:
Source: Fitch Ratings
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