T R O U B L E D C O M P A N Y R E P O R T E R Thursday, November 29, 2007, Vol. 11, No. 283 Headlines 101 MONUMENT: Case Summary & Three Largest Unsecured Creditors 738 ST MARKS: Case Summary & 13 Largest Unsecured Creditors AINSWORTH LUMBER: Posts CDN$37.2MM Net Loss in Qtr. Ended Sept. 30 ALLSTATE EXCAVATING: Case Summary & 20 Largest Unsecured Creditors AMERIQUEST: Fitch Downgrades Ratings on Three Cert. Classes AMERIQUEST MORTGAGE: Fitch Holds Ratings on $1.48 Bil. Certs. AMKOR TECHNOLOGY: Improved Cash Flow Cues S&P's Positive Outlook AMR CORP: Plans to Divest American Eagle Division ARLO VI: Moody's Hacks Rating on $15 Mil. Notes to Ba3 from A3 ARLO VI: Moody's Cuts Rating on $7.5MM Notes to B2 from Baa2 ASPEN EXECUTIVE: Gets Interim OK to Use Calim Venture DIP Funds ASPEN EXECUTIVE: Asset Sale Protocol Gets Court Approval ASSET BACKED: Fitch Lowers Rating on Class M-6 Certs. to B AXON FINANCIAL: Poor Market Value Prompts S&P's Default Ratings BEAR STEARNS: Fitch Holds Low-B Ratings on Six Cert. Classes BEAR STEARNS: Moody's Junks Rating on 2004-SD3 Class B Trusts BFC SILVERTON: Moody's Junks Ratings on Three Note Classes CIGNA CORP: Moody's Affirms (P)Ba1 Rating on Preferred Stock Shelf COLORADO EDUCATIONAL: S&P Lifts Revenue Debt Rating to B+ COLUMBIA AIRCRAFT: Park Electrochemical Cancels Bid for Assets COLUMBIA AIR: Cessna Aircraft Wins Auction with $26.4 Million Bid COMPASS DIVERSIFIED: Offers Shareholders Reinvestment Plan COUNTRYWIDE HOME: Moody's Junks Ratings on Two Loan Classes CREDIT SUISSE: Fitch Lowers Ratings on $209.9MM Transactions CREDIT SUISSE: Fitch Lowers Rating on Class M-3 Certs. to B CRESTED CORP: Completes Merger Deal with U.S. Energy CROWN CASTLE: Fitch Holds 'BB' Rating on $83MM Class G Notes CROWN HOLDINGS: Completes Share Repurchase Deal with BNP Paribas CSFB 2004-CF1: Moody's Lowers Rating on Class B Loan to B3 CYRUS REINSURANCE: Moody's Rates $65MM Sr. Secured Loan at Ba1 DANKA BUSINESS: Delists American Depositary Shares from Nasdaq DECORDOVA/PERMIAN: Fitch Assigns 'B/RR4' Rating on 7.48% Bonds DEERFIELD TRIARC: Moody's Cuts Corporate Family Rating to Ba3 DENNY'S INC: Credit Repayment Cues S&P to Revise Rating to BB DOLE FOOD: Poor Operating Results Cue S&P's Negative Watch DUNMORE HOMES: U.S. Trustee Appoints 7-Member Creditors' Committee DUNMORE HOMES: Three Big Creditors Want Venue Moved to California DURA AUTOMOTIVE: Court Postpones Confirmation Hearing EMAGIN CORP: Sept. 30 Balance Sheet Upside-Down by $3.6 Million ENESCO GROUP: IRS Balks Second Amended Liquidation Plan ENVIRONMENTAL TECTONICS: PNC Waives Default on Credit Facility EQUINOX ON THE PARK: Case Summary & 20 Largest Unsecured Creditors FEENUNE LLC: Case Summary & Five Largest Unsecured Creditors FIELDSTONE MORTGAGE: Can Access C-BASS' $1.5 Mil. DIP Facility FINLAY ENTERPRISES: Posts $7.5MM Net Loss in Period Ended Nov. 3 GAP INC: Board Declares $0.08 Per Share Quarterly Dividend GP&E OPERATING LP: Involuntary Chapter 11 Case Summary GS MORTGAGE: Fitch Lowers Rating on $14.9MM Certificates to BB HANESBRANDS INC: S&P Affirms 'B+' Rating and Revises Outlook HOMEBANC CORP: Can Sell Mortgage Loans with Unpaid Amount of $10MM HOMESTAR MORTGAGE: S&P Cuts Rating on Class M-8 to B from BBB- IPSWICH STREET: Moody's Places B1 Rating Under Review ISONICS CORP: Inks Merger Term Sheet with Universal Guardian JAMES RIVER: Selling 4.5MM Shares Common Stock in Public Offering JAMESON DEVELOPMENT: Voluntary Chapter 11 Case Summary JAYS FOODS: Court Fixes December 17 as Claims Bar Date JOHN RYAN: Case Summary & 4 Largest Unsecured Creditors KMART CORP: Fitch Retains Junk Ratings on $3.9MM Certificates LAKE MARTIN: Selects Espy Metcalf as Bankruptcy Counsel LAKE MARTIN: Can Borrow $4,415,000 from Empire Financial LAKE MARTIN: Wants R. Smith and D. Huskey as Special Counsels LEVITT AND SONS: Homeowners Object to Home Sale Contracts Closing LEVITT AND SONS: Laurel Canyon Residents Want Grace Period LIFEPOINT HOSPITALS: Board Okays $150 Mil. Share Repurchase Plan MACO INC: Files Schedules of Assets and Liabilities MACO STEEL: Committee Wants to Hire Barnes & Thornburg as Counsel MARCAL PAPER: Court Approves Bidding Procedure for Sale of Assets MEDICAL SOLUTIONS: Sept. 30 Balance Sheet Upside-Down by $2.1 Mil. MERRILL LYNCH: Fitch Rates $3.1 Million Class B-5 Certs. at B+ MERRILL LYNCH: Fitch Downgrades Rating on Class B3 Loans to B MICHAEL CLIFFORD: Case Summary & 20 Largest Unsecured Creditors MORGAN CREEK/PERMIAN: Fitch Rates 7.46% Facility Bonds at B/RR4 MORGAN STANLEY: Moody's Lowers Junks Ratings on Three Classes MOTHERS WORK: S&P Hold 'B' Rating and Revises Outlook to Negative MOVIE GALLERY: Panel Taps Imperial Capital as Financial Advisor MOVIE GALLERY: Wants to Pay Obligations to Smaller Suppliers MRS FIELDS: S&P Withdraws Ratings at Company's Request MTI TECHNOLOGY: U.S. Trustee Appoints Nine-Member Creditors Panel MTI TECHNOLOGY: Committee Taps Winthrop as Insolvency Counsel NEPTUNE INDUSTRIES: Sept. 30 Balance Sheet Upside-Down by $2 Mil. NETBANK INC: Intends to Liquidate Assets Under Chapter 11 ORION 2006-2: Poor Credit Quality Cues Moody's Rating Downgrades ORLANDO CITYPLACE: Wants Additional Time to Sell Lexington Hotel PACER HEALTH: Sept. 30 Balance Sheet Upside-Down by $6.8 Million PACIFICNET INC: Posts $220,000 Net Loss in Qtr. Ended Sept. 30 PARK PLACE: Fitch Puts 'BB' Ratings on Three Cert. Classes PARK PLACE: Fitch Cuts Rating on Three Class Certificates PHARMED GROUP: Hires Berger Singerman as Bankruptcy Counsel PHARMED GROUP: Hires Trumbull Group as Claims and Noticing Agent POINTE LLC: Case Summary & Five Largest Unsecured Creditors PRIMITIVO IGLESIAS: Case Summary & 18 Largest Unsecured Creditors QUEBECOR WORLD: Dividend Payment Suspension Cues S&P to Cut Rating REFCO INC: RJM Wants Settlement Pact with FXCM Parties Approved REFCO INC: Judge Drain Approves Settlement Agreement with SPhinX REFCO INC: RCM Distributes $279.5 Million from SPhinX Proceeds RESIDENTIAL ACCREDIT: S&P Retains 'B' Rating Under Neg. Watch RESIDENTIAL ASSET: Moody's Lowers Ratings on 13 Tranches REUNION INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors RFSC SERIES: Moody's Lowers Rating on Class M-2 Loans to Ba1 RIDGEVIEW PROFESSIONAL: Case Summary & Seven Largest Creditors SACO MORTGAGE: Fitch Lowers Ratings on $56.9 Million Certificates SAN HOLDINGS: Files for Bankruptcy Under Chapter 7 in Colorado SAN HOLDINGS: Voluntary Chapter 7 Case Summary SAVE OUR SPRINGS: To Pay Creditors from $60,000 Settlement Fund SBA CMBS: Fitch Affirms 'B+' Rating on $71 Million Certificates SEA CONTAINERS: Wants Exclusive Period Extended to February 20 SEA CONTAINERS: Court Approves Payment of Diligence Fees SECURED ASSETS: Richard Kipperman Appointed as Chapter 11 Trustee SILVER ELMS: Moody's Cuts Rating on $8 Million Notes to B2 SINOFRESH HEALT: Sept. 30 Balance Sheet Upside-Down by $2.8 Mil. SPECIALTY UNDERWRITING: Fitch Holds 'BB' Rating on $2.7MM Trust STANDARD PACIFIC: Denies Rumors of Looming Bankruptcy Filing STRUCTURED ASSET: S&P Junks Rating on Class M3 Certificates STRUCTURED ASSET: Moody's Cuts Rating on Class M4 Loans to B3 SUNNY DELIGHT: Improved Performance Cues S&P to Lift Rating T&B MORTGAGE: Case Summary & 14 Largest Unsecured Creditors TARRAGON CORP: Provides Update on Addressing Liquidity Issues TCM MEDIA: Completed Sale Cues Moody's to Affirm B2 Rating TERWIN MORTGAGE: S&P Puts Default Rating on Class B-5 Loans TESORO CORP: Tracinda Withdraws Common Stock Tender Offer THORPE INSULATION: Taps Pachulski Stang as General Counsel THORPE INSULATION: U.S. Trustee Appoints Nine-Member Committee THORPE INSULATION: Pacific Taps Clark & Trevithick as Counsel TRANSAX INT'L: Sept. 30 Balance Sheet Upside-Down by $3.3 Million TRAVELCLICK HOLDINGS: S&P Assigns 'B' Corporate Credit Rating TREY RESOURCES: Unit Inks LOI to Sell Assets to SWK Solutions TRIBUNE COMPANY: FCC to Decide on Temporary Waiver Today TRICADIA CDO: S&P Puts 'BB' Rating on Class F Notes Under Watch TRUMAN CAPITAL: Moody's Cuts Rating on Two Classes Loan to B3 TYCO INTERNATIONAL: Receives Notice of Default from Bank of NY UAL CORP: Proposed Amendment Prompts S&P to Hold 'B' Rating UAL CORP: Planned Amendment Cues Moody's to Hold B2 Rating UNIVERSAL GUARDIAN: Inks Merger Term Sheet with Isonics VICTOR BELLO: Case Summary & 10 Largest Unsecured Creditors WACHOVIA BANK: Moody's Assigns B3 Rating on $5.547 Million Trust WACHOVIA MORTGAGE: Moody's Cuts Rating on Two Classes to Ba1 WELLS FARGO: Fitch Rates $2.234MM Class B-5 Certificates at B WHERIFY WIRELESS: Sept. 30 Balance Sheet Upside-Down by $13.8 Mil. WILLIAM SPURGEON: Case Summary & 14 Largest Unsecured Creditors WORKFLOW MANAGEMENT: S&P Places 'B' Rating Under Negative Watch ZUFFA LLC: Poor Performance Cues S&P's Ratings Downgrades * Euler Hermes Says Business Bankruptcy Numbers Continue to Rise * Steve Hedberg Nominated to American College of Bankruptcy Board *Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* 101 MONUMENT: Case Summary & Three Largest Unsecured Creditors -------------------------------------------------------------- Debtor: 101 Monument Road, Inc. c/o Atlantia Holdings, Inc. 645 East Dania Beach Boulevard Dania Beach, FL 33004 Bankruptcy Case No.: 07-20345 Chapter 11 Petition Date: November 26, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: Raymond B. Ray Debtor's Counsel: Harold D. Moorefield Jr., Esq. Stearns Weaver Miller et al. 150 West Flagler Street, Suite 2200 Miami, FL 33130 Tel: (305) 789-3467 Fax: (305) 789-3395 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's list of its Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ DBR Asset Management Trade Debt Unknown Brian Mark One Financial Plaza, Suite 2001 Fort Lauderdale, FL 33394 Probate Estate of Loans Unknown Konstantinos Boulis c/o Joan S. Wagner and Gus Morfidis Co-Personal Representatives 645 East Danie Beach Boulevard Dania, FL 33004 Waldman Feluren Hildebrandt and Legal Services $39,625 Trigoboff 2200 North Commerce Parkway Suite 202 Weston, FL 33326-3258 738 ST MARKS: Case Summary & 13 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: 738 St. Marks Avenue Associates aka 738 St. Marks Avenue Rehab Associates 738 St. Marks Avenue Brooklyn, NY 11213 Bankruptcy Case No.: 07-46457 Chapter 11 Petition Date: November 26, 2007 Court: Eastern District of New York (Brooklyn) Debtor's Counsel: Arnold Mitchell Greene, Esq. Robinson Brog Leinwand Greene et al. 1345 Avenue of the Americas 31st Floor New York, NY 10105 Tel: (212) 603-6399 Fax: (212) 956-2164 Total Assets: $1,632,553 Total Debts: $1,150,224 Debtor's list of its 13 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Bernard Schnitzer $125,333 27 Island Drive Boynton Beach, FL 33463 Jay Oberst $125,333 6 Westminster Road Medham, NJ 07945 Alan Halpert $125,333 7282 Ballantrae Court Boca Raton, FL 33496 AICCO Inc. $10,000 Lex Construction $5,000 BPC Management Corp. $2,000 Keyspan Energy Delivery $1,100 Con Edison $975 Kone Inc. $347 Jordan Intercom $250 Paychex Inc. $137 Global Paladin Compactor $54 Sprint $44 AINSWORTH LUMBER: Posts CDN$37.2MM Net Loss in Qtr. Ended Sept. 30 ------------------------------------------------------------------ Ainsworth Lumber Co. Ltd. reported its financial results for the quarter ended Sept. 30, 2007. The net loss for the quarter ending Sept. 30, 2007, was CDN$37.2 million on sales of CDN$150.8 million, compared to a net loss of CDN$77.5 million on sales of CDN$181.1 million in 2006. The reduced loss for the third quarter of 2007 reflected production curtailments and other cost control measures implemented by the company as well as a significant foreign exchange gain on long-term debt. The reported results for the 2007 quarter included a CDN$52.1 million tax valuation allowance on previously benefited tax losses, an CDN$8.6 million impairment charge on intangible assets, and an CDN$8.6 million legal settlement provision. On a year to date basis, the net loss of CDN$32.0 million for 2007 was CDN$2.1 million higher than the net loss in the same period of 2006. Cash from operations decreased compared to the third quarter of 2006 and the first nine months of 2006 as a result of the unfavourable market conditions, which reduced profitability. As of Sept. 30, 2007, its adjusted working capital was CDN$170.6 million, compared to CDN$186.6 million as at Dec. 31, 2006. Additions to capital assets were CDN$7.4 million in the third quarter of 2007, down from CDN$60.1 million in the third quarter of 2006. Year to date capital spending was CDN$65.7 million in 2007 compared to CDN$166.9 million in 2006. This decrease reflects our decision to put any discretionary capital expenditures, including the expansion of Grande Prairie, on hold until market conditions improve. At Sept. 30, 2007, the company's balance sheet showed total assets of CDN$1.3 billion and total liabilities of CDN$1.1 billion, resulting in a stockholders' equity of CDN$191.5 million. Equity at Dec. 31, 2006, CDN$294.1 million. Headquartered in Vancouver, British Columbia, Ainsworth Lumber Co. Ltd. (TSE:ANS) -- http://www.ainsworth.ca/-- manufactures structural-engineered wood products, including oriented strand board, and specialty overlaid plywood. The company owns and operates six OSB manufacturing facilities, three in Canada and three in northern Minnesota. It has a 50% ownership interest in an OSB facility, located in High Level, Alberta. Ainsworth is also a manufacturer of specialty overlaid concrete-form plywood products in North America. Ainsworth's business is focused on the structural wood panels sector. It offers value-added products, such as OSB webstock, rimboard, radiant barrier OSB panels, jumbo OSB panels, export-standard OSB and specialty overlaid plywood. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Moody's Investors Service downgraded Ainsworth Lumber Co. Ltd.'s corporate family rating to Caa1 from B2. At the same time, the ratings on the senior unsecured notes were downgraded to Caa1 from B2 and the rating on the secured term loan was downgraded to B2 from Ba3. Standard & Poor's Ratings Services placed Ainsworth Lumber Co. Ltd.'s long-term foreign and local issuer credit ratings at 'CCC+' in March 2007. The outlook is negative. The ratings still hold to date. ALLSTATE EXCAVATING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Allstate Excavating Corp. aka Allstate Precast 201 Wheatsworth Road Hamburg, NJ 07419 Bankruptcy Case No.: 07-27391 Chapter 11 Petition Date: November 27, 2007 Court: District of New Jersey (Newark) Debtor's Counsel: David L. Bruck, Esq. Greenbaum, Rowe, Smith, & Davis LLP P.O. Box 5600 Woodbridge, NJ 07095 Tel: (732) 549-5600 Fax: (732) 549-1881 Total Assets: $2,310,000 Total Debts: $6,212,908 Debtor's list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Estate of William H. Wurster $2,700,000 c/o Black & Gerngross P.C. 1617 John F. Kennedy Boulevard Suite 1575 Attn: Alfred Rauch III, Esq. Philadelphia, PA 19103 Woodland Group $354,442 376 Route 15 Suite 205 Sparta, NJ 07871 All State Property Management Rent $198,500 201 Wheatsworth Road Hamburg, NJ 07419 Lehigh Cement Company $59,292 Kennedy Culvert & Supply $54,481 Hamburg Supply $43,053 Foley Machinery $41,234 JC Concrete and Curb Co. $34,997 Giant Tire Service $29,928 Peerless Concrete Co. $20,851 Specco Industries Inc. $19,926 Double Twenties, Inc. $19,005 Extec Northeast $18,509 American Express $16,493 Carista, Kulsar & Wade $15,754 Recon Wall Systems $15,601 Civil Solutions Group, LLC $13,160 Equipment Supply $12,264 C&C Foundations $10,000 AJ Concrete $9,490 AMERIQUEST: Fitch Downgrades Ratings on Three Cert. Classes ----------------------------------------------------------- Fitch has taken rating actions on these two Ameriquest subprime issues: Argent Series (ARSI) 2004-W3: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'A-'; -- Class M-2 affirmed at 'BBB+'; -- Class M-3 affirmed at 'BBB'; -- Class M-4 downgraded to 'BB' from 'BBB-'; -- Class M-5 downgraded to 'B' from 'BB+,' placed on Rating Watch Negative; Ameriquest Series (AMSI) 2003-AR3: -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 downgraded to 'BB' from 'BBB-'; placed on Rating Watch Negative. The affirmations, affecting approximately $170.1 million of the outstanding balances, are taken due to a satisfactory relationship of credit enhancement to expected losses. In series 2004-W3, class M-4 is downgraded and class M-5 is downgraded and placed on Rating Watch Negative due to monthly losses exceeding excess spread, which has caused deterioration in the overcollateralization amount. As of the October 2007 distribution, the OC amount of $2.9 million is below the target amount of $3.8 million. Monthly losses have exceeded excess spread by an average of $270 thousand over the last twelve months. As of the cut-off date, the pool factor (percentage of loans remaining) for series 2004-W3 is 18% and 13.94% of the remaining balance is more than sixty days delinquent. The deal is currently seasoned 43 months. In series 2003-AR3, class M-6 is placed on Rating Watch Negative due to monthly losses exceeding excess spread, which has caused deterioration in the OC amount. As of the October 2007 distribution, the OC amount of $11.4 million is below the target of $21.2 million. Monthly losses have exceeded excess spread by an average of $591 thousand over the last 12 months. As of the cut-off date, the pool factor for series 2003-AR3 is 7% and 22.8% of the remaining balance is more than sixty days delinquent. The deal is currently seasoned 52 months. The collateral in the aforementioned transaction consists of fixed- and adjustable-rate, closed-end, first lien subprime mortgage loans. For series 2003-AR3 and 2004-W3 the majority of loans were originated or acquired by Ameriquest or Argent respectively. All of the mortgage loans are serviced by Citi Residential Lending Inc., which is rated 'RPS3+' by Fitch. AMERIQUEST MORTGAGE: Fitch Holds Ratings on $1.48 Bil. Certs. ------------------------------------------------------------- Fitch Ratings has taken these rating actions on Ameriquest mortgage pass-through certificates. Affirmations total $1.48 billion and downgrades total $39.5 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2005-R2: -- $143.6 million class A affirmed at 'AAA' (BL:73.72, LCR:7.82); -- $31.2 million class M-1 affirmed at 'AA+' (BL:63.43, LCR:6.73); -- $49.8 million class M-2 affirmed at 'AA' (BL:48.97, LCR:5.2); -- $16.8 million class M-3 affirmed at 'AA-' (BL:44.9, LCR:4.77); -- $28.8 million class M-4 affirmed at 'A+' (BL:37.33, LCR:3.96); -- $16.8 million class M-5 affirmed at 'A' (BL:31.02, LCR:3.29); -- $12.0 million class M-6 affirmed at 'A-' (BL:26.05, LCR:2.76); -- $19.2 million class M-7 affirmed at 'BBB+' (BL:18.81, LCR:2); -- $9.0 million class M-8 affirmed at 'BBB' (BL:17.45, LCR:1.85); -- $13.2 million class M-9 affirmed at 'BBB' (BL:15.38, LCR:1.63); -- $7.8 million class M-10 affirmed at 'BB+' (BL:14.19, LCR:1.51); -- $12.0 million class M-11 affirmed at 'BB' (BL:12.62, LCR:1.34); Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 17.75%; -- Realized Losses to date (% of Original Balance): 1.22%; -- Expected Remaining Losses (% of Current Balance): 9.42%; -- Cumulative Expected Losses (% of Original Balance): 4.15%. Series 2005-R3: -- $396.3 million class A affirmed at 'AAA' (BL:50.4, LCR:5.70); -- $53.0 million class M-1 affirmed at 'AA+' (BL:38.67, LCR:4.37); -- $47.0 million class M-2 affirmed at 'AA' (BL:31.58, LCR:3.57); -- $27.0 million class M-3 affirmed at 'AA-' (BL:27.38, LCR:3.09); -- $25.0 million class M-4 affirmed at 'A+' (BL:23.46, LCR:2.65); -- $19.0 million class M-5 affirmed at 'A' (BL:20.47, LCR:2.31); -- $13.0 million class M-6 affirmed at 'A-' (BL:18.37, LCR:2.08); -- $10.0 million class M-7 affirmed at 'BBB+' (BL:16.64, LCR:1.88); -- $10.0 million class M-8 affirmed at 'BBB' (BL:14.92, LCR:1.69); -- $13.0 million class M-9 affirmed at 'BBB-' (BL:12.63, LCR:1.43); -- $23.0 million class M-10 downgraded to 'BB' from 'BB+' (BL:8.94, LCR:1.01); Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 19.04%; -- Realized Losses to date (% of Original Balance): 0.78%; -- Expected Remaining Losses (% of Current Balance): 8.85%; -- Cumulative Expected Losses (% of Original Balance): 3.64%. Series 2005-R5: -- $280.9 million class A affirmed at 'AAA' (BL:55.68, LCR:4.91); -- $48.0 million class M-1 affirmed at 'AA+' (BL:48.87, LCR:4.31); -- $43.5 million class M-2 affirmed at 'AA+' (BL:40.99, LCR:3.62); -- $29.3 million class M-3 affirmed at 'AA' (BL:35.53, LCR:3.13); -- $24.0 million class M-4 affirmed at 'AA-' (BL:31.01, LCR:2.73); -- $23.3 million class M-5 affirmed at 'A' (BL:26.64, LCR:2.35); -- $18.8 million class M-6 affirmed at 'A-' (BL:17.79, LCR:1.57); -- $15.0 million class M-7 affirmed at 'BBB+' (BL:15.79, LCR:1.39); -- $14.3 million class M-8 affirmed at 'BBB' (BL:13.84, LCR:1.22); -- $8.3 million class M-9 downgraded to 'BBB-' from 'BBB' (BL:12.59, LCR:1.11); -- $8.3 million class M-10 downgraded to 'BB' from 'BB+' (BL:11.59, LCR:1.02); -- $11.3 million class M-11 affirmed at 'BB' (BL:11.15, LCR:0.98); Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 17.73%; -- Realized Losses to date (% of Original Balance): 1.05%; -- Expected Remaining Losses (% of Current Balance): 11.34%; -- Cumulative Expected Losses (% of Original Balance): 5.12%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. AMKOR TECHNOLOGY: Improved Cash Flow Cues S&P's Positive Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Chandler, Arizona-based Amkor Technology Inc. to positive from stable, reflecting improved cash flow and leverage. The corporate credit rating is affirmed at 'B+'. "The ratings on Amkor reflect challenging industry characteristics, limited demand visibility, and high operating leverage," said Standard & Poor's credit analyst Lucy Patricola. "These factors are partially offset by the company's strong market position and sustained improvement in operations and cash flow." Amkor is a leading independent provider of outsourced packaging and testing services to semiconductor makers. Sales for the 12 months ended September 2007 totaled $2.7 billion, and total lease- adjusted debt was $1.9 billion. Positive free operating cash flow has been improving since 2006, driven by stable profitability, working capital efficiencies, and moderate capital spending. For the nine months ended in September, positive free cash flow totaled $254 million, up from $128 million in 2006. Amkor has used surplus cash to reduce debt and replenish liquidity. Amkor's leverage currently is low for the rating, with debt to EBITDA of 2.8x as of Sept. 30, 2007, compared with 6.5x as of December 2005. Pro forma for the potential retirement of 2008 maturities, leverage could fall further. AMR CORP: Plans to Divest American Eagle Division ------------------------------------------------- AMR Corporation, the parent company of American Airlines Inc., plans to divest American Eagle, its regional carrier. AMR, which has been engaged in an ongoing strategic value review process, relates that a divestiture of American Eagle is in the best interests of AMR and its shareholders and will be beneficial to American, American Eagle, their employees, and other stakeholders. The divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for American Eagle's employees. AMR also stated that the divestiture will enable American to focus on its mainline business, while ensuring American's continued access to cost-competitive regional feed. Once the two airlines are separated, it is expected that they will operate pursuant to a mutually beneficial air services agreement under which American Eagle will continue to provide American with regional flying of a scope and quality comparable to that provided prior to the separation and on terms that reflect today's market for those services. AMR evaluates the form of the divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation from AMR. The company expects to complete the divestiture in 2008; however, the completion of any transaction and its timing will depend on a number of factors, including general economic, industry and financial market conditions, well as the ultimate form of the divestiture. "The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," Gerard Arpey, AMR Chairman and CEO, said. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure." Mr. Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Mr. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, well as American, will better position American Eagle to compete for new customers and growth opportunities in the future. American Eagle is a fully developed operating unit providing a full range of regional airline services with excellent employees and a modern fleet. It operates approximately 300 aircraft, with approximately 1,700 daily flights to more than 150 cities throughout the United States, Canada, the Bahamas, the Caribbean and Mexico. In 2007, American Eagle expects to generate annual revenues of approximately $2.3 billion. The planned divestiture would include both American Eagle Airlines Inc., which feeds American Airlines hubs throughout North America, and its affiliate, Executive Airlines Inc., which carries the American Eagle name throughout the Bahamas and the Caribbean from bases in Miami and San Juan, Puerto Rico. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines Inc., as: (i)AMR: issuer default rating at 'B-'; and senior unsecured debt at 'CCC'/RR6'; (ii)American Airlines: issuer default rating at 'B- '; secured bank credit facility at 'BB-/RR1'. The Rating Outlook for both AMR and American has been revised to positive from stable. ARLO VI: Moody's Hacks Rating on $15 Mil. Notes to Ba3 from A3 -------------------------------------------------------------- Moody's Investors Service downgraded and placed these notes issued by ARLO VI Limited Series 2006 (Marine Pier 1) on review for possible downgrade: Class Description: $15,000,000 Variable Secured Limited Recourse Credit-Linked Notes due 2047 -- Prior Rating: A3 -- Current Rating: Ba3, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. ARLO VI: Moody's Cuts Rating on $7.5MM Notes to B2 from Baa2 ------------------------------------------------------------ Moody's Investors Service downgraded and placed these notes issued by ARLO VI Limited Series 2006 (South Pier 1) on review for possible downgrade: Class Description: $7,500,000 Variable Secured Limited Recourse Credit-Linked Notes due 2047 -- Prior Rating: Baa2 -- Current Rating: B2, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. ASPEN EXECUTIVE: Gets Interim OK to Use Calim Venture DIP Funds --------------------------------------------------------------- Aspen Executive Air LLC obtained interim approval from the U.S. Bankruptcy Court for the District of Delaware to obtain up to $2,000,000 in debtor-in-possession financing from John P. Calamos, Sr. and Calim Venture Parters II, LLC. The Debtor needs the interim facility to, among other things: -- maintain business relationships with vendors, suppliers and customers; -- make payroll; -- satisfy other working capital and operational needs; and -- proceed with an auction to sell its business as a going concern. Interest on the funds will accrue at the rate of 11% per annum calculated on a 360-day year. Upon the occurrence of and during the continuance of any event of default, interest will be payable at 2% above the 11% rate. Pursuant to Section 364(c)(l) of the Bankruptcy Code, $600,000 of the DIP Obligations will constitute allowed claims against the Debtor with priority over any and all claims. As security for a maximum of $600,000 of the DIP Obligations, the Debtor grants the DIP Lenders these security interests and liens: a) first lien on unencumbered property, including unencumbered cash, inventory, and accounts receivable; b) liens junior to certain other liens on all of the Debtor's prepetition and postpetition properties; and c) liens senior to any lien avoided and preserved for the benefit of the Debtor and its estate or any lien granted in favor of any federal, state, and other governmental units. Pursuant to the Interim Order, the DIP Lenders will be named as additional insured on each insurance policy maintained by the Debtor which in any way relates to the DIP Lenders' collateral. The proceeds of any such insurance policy will be applied to repay the obligations under the interim facility, in the priority in which the DIP Lenders have an interest in the underlying the collateral. The hearing to consider final approval of the financing has been set for Dec. 18, 2007, at 12:00 p.m., EST. Based in Basalt, Colorado, Aspen Executive Air, L.L.C., aka AEXJet -- http://www.aexjet.com/-- is a private jet travel company. The company filed for chapter 11 protection on Sept. 14, 2007 (Bankr. D. Del. Case No. 07-11341). Laura Davis Jones, Esq., Bruce Grohsgal, Esq., and Curtis A. Hehn, Esq., at Pachulski Stang Ziehl & Jones LLP represent the Debtor. Donald J. Bowman, Jr., Esq., and Michael R. Nestor, Esq., at Young, Conaway, Stargatt & Taylor represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection form its creditors, it listed assets between $1 million and $100 million. The Debtor's list of 20 largest unsecured creditors showed claims of more than $20 million. ASPEN EXECUTIVE: Asset Sale Protocol Gets Court Approval -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved the procedures proposed by Aspen Executive Air LLC governing the sale of substantially all of its assets to Pinnacle Air LLC, subject to higher and better offers. Pinnacle Air is currently owned by Robert Thornton, Wiliam Schwyhart, and Mrs. J.B. Hunt. In connection with the sale, John P. Calamos, Sr. -- the Debtor's postpetition financing lender -- is expected to make an investment in Pinnacle Air and become its controlling shareholder. Auction of the assets will be held on Dec. 14, 2007, at the offices of Pachulski Stang Ziehl & Jones LLP, 919 North Market Street, 17th Floor, P.O. Box 8705, in Wilmington, Delaware. To participate in the auction, competing bids must be submitted on or before 12:00 p.m. EST on Dec. 13, 2007. Initial overbid for the assets is $150,000 with additional bids in increments of at least $100,000. The hearing to consider results of the sale has been set for Dec. 18, 2007, at 12:00 p.m. EST. Objections to the sale, if any, are due 4:00 p.m. EST on Dec. 11, 2007. Based in Basalt, Colorado, Aspen Executive Air, L.L.C., aka AEXJet -- http://www.aexjet.com/-- is a private jet travel company. The company filed for chapter 11 protection on Sept. 14, 2007 (Bankr. D. Del. Case No. 07-11341). Laura Davis Jones, Esq., Bruce Grohsgal, Esq., and Curtis A. Hehn, Esq., at Pachulski Stang Ziehl & Jones LLP represent the Debtor. Donald J. Bowman, Jr., Esq., and Michael R. Nestor, Esq., at Young, Conaway, Stargatt & Taylor represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection form its creditors, it listed assets between $1 million and $100 million. The Debtor's list of 20 largest unsecured creditors showed claims of more than $20 million. ASSET BACKED: Fitch Lowers Rating on Class M-6 Certs. to B ---------------------------------------------------------- Fitch Ratings has taken these rating actions on Asset Backed Funding Corp. mortgage pass-through certificates: Series 2003-WF1 -- Class A-2 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A+'; -- Class M-3 downgraded to 'BB' from 'BBB+' and removed from Rating Watch Negative; -- Class M-4 downgraded to 'BB-'from 'BBB-' and removed from Rating Watch Negative. Series 2003-WMC1 -- Class M-1 affirmed at 'AAA'; -- Class M-2 affirmed at 'A+'; -- Class M-3 affirmed at 'A'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5, rated 'BBB', placed on Rating Watch Negative; -- Class M-6 downgraded to 'B' from 'BBB-'. The affirmations reflect a satisfactory relationship between credit enhancement and future loss expectations and affect approximately $65 million of outstanding certificates, as of the October 2007 distribution date. The downgrades total approximately $3.2 million of outstanding certificates and the bond placed on rating watch negative has a balance outstanding of approximately $1 million. These rating actions reflect the deterioration of CE relative to future expected losses. The transactions are seasoned 55 months and 47 months, respectively. The pool factors are 11% and 9%, respectively. The cumulative losses to date, as a percentage of the pools' initial balances, are 1.17% and 0.68%, respectively. The underlying collateral consists of 1) fixed-rate and adjustable-rate loans secured by first liens on residential mortgage properties extended to subprime borrowers for the 2003- WF1 transaction and 2) fixed-rate and adjustable-rate mortgage loans secured by first and second liens for the 2003-WMC1 transaction. The servicers for the loans in these transactions are Wells Fargo Home Mortgage, Inc (2003-WF1) and HomEq Servicing Corp. (2003-WMC1) and they are both rated 'RPS1', by Fitch. As of the October 2007 distribution date, for series 2003-WF1, the overcollateralization was $597,470 with a target of $1,460,949. The 60+ delinquencies are 10.04% of current collateral balance. This includes foreclosures and REO of 0.96% and 1.18%, respectively. For the 2003-WMC1 transaction, the OC was $1,147,920 with a target of $2,140,458. The 60+ delinquencies are 10.69% of current collateral balance. This includes foreclosures and REO of 3.39% and 2.14%, respectively. AXON FINANCIAL: Poor Market Value Prompts S&P's Default Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its issuer credit rating on Axon Financial Funding LLC and Axon Financial Funding Ltd., co-issuers of the structured investment vehicle. Standard & Poor's also lowered its ratings on Axon's commercial paper, medium-term note, and subordinated mezzanine note programs. The downgrades reflect further deterioration of the market value of Axon's portfolio. On Nov. 19, 2007, Axon Asset Management Inc. notified Standard & Poor's that it had determined that the assets were insufficient to fully repay the senior liabilities, causing an "automatic liquidation event." The net asset value to total paid-in capital has fallen below 0%. All liability payments will be suspended and all senior liabilities will be paid pari passu once the collateral is liquidated. As a result of the automatic liquidation event, Axon failed to pay its liabilities maturing on Nov. 26, 2007. The outstanding amount of Axon's senior debt is approximately $8.28 billion, and the outstanding amount of the subordinated mezzanine notes is approximately $890.00 million. Axon is a SIV structure managed by Axon Asset Management Inc., which purchases assets, manages the portfolio, and oversees the issuance of CP and MTNs. The portfolio is predominantly invested in structured finance assets, a considerable portion of which is U.S. RMBS, CMBS, and CDO securities. Ratings Lowered Axon Financial Funding LLC and Axon Financial Funding Ltd. Up to $20.00 billion European and U.S. CP and MTN programs and up to $1.25 billion subordinated mezzanine note program Rating ------ To From -- ----- Issuer credit D CCC/Watch Neg/C CP program D C/Watch Neg MTN program D CCC/Watch Neg Sub. mezzanine note program D CCC-/Watch Neg BEAR STEARNS: Fitch Holds Low-B Ratings on Six Cert. Classes ------------------------------------------------------------ Fitch Ratings has affirmed Bear Stearns Commercial Mortgage Securities Trust's commercial mortgage pass-through certificates, series 2002-TOP8, as: -- $99.3 million class A-1 at 'AAA'; -- $538.8 million class A-2 at 'AAA'; -- Interest only classes X-1 and X-2 at 'AAA'; -- $25.3 million class B at 'AAA'; -- $28.4 million class C at 'A+'; -- $9.5 million class D at 'A'. -- $11.6 million class E at 'BBB+'; -- $6.3 million class F at 'BBB'; -- $4.2 million class G at 'BBB-'; -- $8.4 million class H at 'BB+'; -- $3.2 million class J at 'BB'; -- $4.2 million class K at 'BB-'; -- $3.2 million class L at 'B+'; -- $3.2 million class M at 'B'; -- $2.1 million class N at 'B-'. Fitch does not rate the $5.1 million class O. The rating affirmations are the result of stable performance since Fitch's last rating action. As of the October 2007 distribution date, the pool's aggregate principal balance has decreased 10.6% to $752.8 million compared to $842.2 million at issuance. There are currently no loans in special servicing. Fifteen loans (23.7%) have defeased since issuance. Seven loans (32.3% of the pool) were shadow rated investment grade at issuance, three of which have defeased. All shadow ratings remain investment grade. Dulles Towne Crossing (6.1%) is secured by a 737,558 sf power retail center in Sterling, Virginia. Wal-Mart, Lowe's, and Sam's own their buildings (418,047 sf) and are on ground leases through 2021 with numerous extension options. Additional tenants include: Best Buy, Nordstrom Rack, Bed, Bath & Beyond, Dick's Sporting Goods and T.J. Maxx. As of June 2007, the property was 100% occupied compared to 99% at issuance. Flushing Plaza (3.9%) is secured by a 243,092 sf office building with street level retail in Flushing, New York. Occupancy as of June 2007 was 96% compared to 100% at issuance. Princeton Shopping Center (2.5%) is secured by a 228,679 sf anchored retail center in Princeton, New Jersey. Occupancy as of June 2007 was 98% compared to 99% at issuance. TriQuest Business Center (1.8%) is secured by a 205,060 sf industrial building in Irvine, California. Occupancy as of June 2007 was 94% compared to 93% at issuance. BEAR STEARNS: Moody's Junks Rating on 2004-SD3 Class B Trusts ------------------------------------------------------------- Moody's Investors Service downgraded the ratings of three tranches issued in two separate mortgage transactions. The collateral backing each tranche consists primarily of first-lien, fixed- and adjustable-rate scratch and dent mortgage loans. The deals being reviewed have experienced an increasing proportion of severely delinquent loans while the amount of available credit enhancement has been reduced from losses and stepdown. The timing of losses coupled with passing of performance triggers has caused the protection available to the subordinate bonds to be diminished. Complete rating actions are: Issuer: Bear Stearns Asset-Backed Securities Trust 2004-SD1 -- Cl. B, Downgraded to B1 from Baa3 Issuer: Bear Stearns Asset Backed Securities Trust 2004-SD3 -- Cl. M-3, Downgraded to Ba1 from Baa2 -- Cl. B, Downgraded to Caa1 from Baa3 BFC SILVERTON: Moody's Junks Ratings on Three Note Classes ---------------------------------------------------------- Moody's Investors Service downgraded ratings of seven classes of notes issued by BFC Silverton, Ltd. and left on review for possible further downgrade ratings of five of these classes of notes. The notes affected by the rating action are: Class Description: Up to $450,000,000 Class A-1 Senior Variable Funding Floating Rate Notes Due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Aa1, on review for possible downgrade Class Description: Up to $450,000,000 Class A-2 Senior Floating Rate Notes Due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Aa1, on review for possible downgrade Class Description: $75,000,000 Class B-1 Senior Floating Rate Notes Due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $75,000,000 Class B-2 Senior Floating Rate Notes Due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $56,250,000 Class C Senior Floating Rate Notes Due 2046 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa3, on review for possible downgrade Class Description: $30,000,000 Class D Floating Rate Deferrable Notes Due 2046 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: $26,250,000 Class E Floating Rate Deferrable Notes Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca The rating actions reflect severe deterioration in the credit quality of the underlying portfolio, as well as the occurrence, as reported by the Trustee on Nov. 13, 2007, of an event of default caused by a failure of the Class A/B Par Value Coverage Ratio to equal or exceed 100%, as required under Section 5.1(d) of the Indenture dated Oct. 31, 2006. BFC Silverton CDO, Ltd is a collateralized debt obligation backed primarily by a portfolio of RMBS and CDO securities. Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to effect the calculation of overcollateralization. Thus, the Class A/B Par Value Coverage Ratio failed to meet the required level. Upon an event of default in this transaction, certain noteholders are entitled to exercise certain remedies under the indenture. For example a majority of the aggregate outstanding amount of the Class A Notes may direct the sale and liquidation of the collateral when the Class A/B Par Value Coverage Ratio falls below 100 percent. It is not clear at this time whether the Class A Noteholders will choose to exercise this option. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The expected losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued by the controlling class. Because of this uncertainty, the Class A-1, Class A-2, Class B-1, Class B-2 and the Class C Notes remain on review for possible downgrade pending the receipt of definitive information. CIGNA CORP: Moody's Affirms (P)Ba1 Rating on Preferred Stock Shelf ------------------------------------------------------------------ Moody's Investors Service affirmed CIGNA Corporation's Baa2 senior unsecured debt rating following the company's announcement to acquire the health care operations of Great-West Life & Annuity Insurance Company. Also affirmed were CIGNA's P-2 commercial paper rating and A2 insurance financial strength ratings of Connecticut General Life Insurance Company and Life Insurance Company of North America. The outlook on the unsecured debt rating and the IFSRs remains positive. Moody's stated that CIGNA will fund the transaction with $1.1 billion in cash and between $400 and $500 million of new long term debt. However, the rating agency noted, the resulting financial leverage ratio at the time the deal closes in 2008 is not expected to vary significantly from its current level. CIGNA will also provide approximately $400 million in capital support for the acquired business to maintain its overall risk based capital ratio at 300% of company action level. It is anticipated that CIGNA will retain approximately $250 million of cash at the parent company. The acquisition will provide CIGNA with an additional 1.5 million members largely located in key geographic areas the company had targeted for growth, namely, particularly the Western regions of the United States. Additionally, the rating agency noted, CIGNA intends to utilize GWLA's operating platform, thus reducing the risk of integration problems. According to Moody's, the positive outlook reflects CIGNA's strong business and financial profile as demonstrated by its continued solid earnings and membership growth. Through the first three quarters of 2007, the company has realized organic commercial membership growth of 4.8%, the largest growth among all the large national healthcare insurers, and a net earnings margin of 6.5%. Although actual outstanding debt of approximately $1.8 billion as of Sept. 30, 2007 is within a reasonable range for the company's size, the company's pension liability and operating leases bring financial leverage to 43% which is higher than what would be expected for the current rating category. However, Moody's anticipates that CIGNA will be addressing its pension liability and reducing this liability over the next several years and expects the company to manage its adjusted debt in the 30% to 40% range. Moody's noted that the leveraged funding of the transaction and the additional goodwill being added to CIGNA's balance sheet is a credit concern. Therefore, as a result of the additional debt being added for the acquisition, the time frame for CIGNA to bring its financial leverage below 40% is expected to be extended. This will likely delay a possible upgrade of the company's ratings, but there is still positive momentum in CIGNA's credit profile. Additionally, the rating agency pointed out that CIGNA's Disability and Life, and International segments have produced consistent results over the last several years and provide diversification to CIGNA's core healthcare business. Moody's also stated that while a hedge program has been implemented to reduce the adverse financial impact from CIGNA's problematic run-off reinsurance segment, the company is still vulnerable to potential losses from this block of business. Moody's indicated that if CIGNA continues to achieve after-tax earnings margins of at least 5%, organic commercial membership growth of at least 4% in 2008, maintains its consolidated RBC in the range of 300% CAL, and reduces its adjusted financial leverage below 40% while maintaining EBIT interest coverage of at least 10 times, the ratings could be upgraded. However, the outlook could be changed back to stable if annual organic membership growth is below 3%, after-tax earnings margins decline below 3%, financial leverage increases above the current 43% level, there is a large acquisition which involves significant integration challenges, or there is adverse reserve development of over 10% of equity with respect to the reinsurance segment. These ratings were affirmed with a positive outlook: * CIGNA Corporation -- senior unsecured debt rating at Baa2; -- provisional senior unsecured debt shelf rating at (P)Baa2; -- provisional subordinated debt shelf rating at (P) Baa3; -- provisional preferred stock shelf rating at (P) Ba1; * Connecticut General Life Insurance Company -- insurance financial strength rating at A2; * The Life Insurance Company of North America -- insurance financial strength rating at A2. This rating was affirmed with a stable outlook: * CIGNA Corporation -- short-term debt rating for commercial paper at Prime-2. CIGNA Corporation, headquartered in Philadelphia, Pennsylvania, provides employee benefits, including health care products and services, and group disability, life and accident insurance throughout the United States. It also provides life, accident, health and expatriate employee benefits insurance coverage in selected international markets, primarily in Asia and Europe. For the first nine months of 2007, the company reported consolidated GAAP revenues of approximately $13.2 billion, shareholders' equity of approximately $4.2 billion, and total enrollment of 10.2 million medical members (excluding Part D membership). Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. COLORADO EDUCATIONAL: S&P Lifts Revenue Debt Rating to B+ --------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on Colorado Educational and Cultural Facilities Authority's charter school revenue debt, supported by Renaissance Charter School Building Corp., originally issued for the now defunct Renaissance Charter School, one notch to 'B+' from 'B' due to North Star Academy Charter School's positive enrollment and financial trends. The positive outlook reflects the school's potential for continued enrollment growth and strengthening of its financial position. The rating reflects the new charter school's short operating history; the risk associated with start-up operations, including staffing and enrollment challenges; the risk associated with all charter schools, including the need for multiple charter renewals over the bonds' life; the relatively low cash reserves; a short operating lease; and the potential for additional debt and increased rental payments in the near future. The positive outlook reflects the rating service's expectation that the school will be able to meet its obligations under the lease but that it might face challenges given its start-up nature and the challenges all charter schools face, including enrollment fluctuations and the need for multiple charter renewals through the bonds' life. "The school's continued exhibition of strong demand characteristics, sound financial management, and stable overall operations might warrant a higher rating," said Standard & Poor's credit analyst James Breeding. Given North Star Academy Charter School's start-up nature, a limited financial and operational history is available. State per-pupil funding is currently estimated at $6,500 per pupil. The fiscal 2008 budget indicates total per-pupil revenues of $2.55 million. Additional revenues bring total income to $2.94 million. Budgeted expenditures total $2.89 million: $292,175, or about 10% of operations, of which management allocates for rental payments, which fully cover debt service. A small $45,000 surplus is budgeted. At fiscal year-end 2007, unrestricted net assets totaled $51,231 with an additional $66,280 restricted for emergencies. The unaudited balance sheet shows cash and deposits totaling slightly more than $270,000, or about 40 days' operations. Based on fiscal 2007 preliminary results, net revenues provided debt service coverage of 1x. Preliminary enrollment projections indicate growth to roughly 450 full-time equivalents by 2011 in K-8. Preliminary financial projections through 2012 point to rental payments more than doubling to roughly $685,000, indicating that further capital expenditures are likely because school officials would like to add an additional facility for grade expansion in 2009 or 2010. The rating action affects roughly $3 million of debt outstanding. COLUMBIA AIRCRAFT: Park Electrochemical Cancels Bid for Assets -------------------------------------------------------------- Park Electrochemical Corp. had discontinued its participation in the bidding for certain of the assets and business of Columbia Aircraft Manufacturing Corporation in an auction conducted in the United States Bankruptcy Court for the District of Oregon in Portland, Oregon on Nov. 27, 2007. Park had submitted an initial bid for certain of the assets and business of Columbia on Nov. 20, 2007 after conducting extensive due diligence at Columbia in Bend, Oregon and elsewhere. Park participated in the auction in the Bankruptcy Court in Portland on Nov. 27, 2007 but chose to discontinue its participation in the auction bidding process. Park has incurred approximately $500,000 in out-of-pocket expenses relating to its due diligence efforts, all of which will be expensed in Park's third quarter ended Nov. 25, 2007. "We would like to thank the employees of Columbia Aircraft Manufacturing for all of their help and assistance relating to our due diligence efforts," Brian Shore, Park's President and CEO, said. "We wish the employees the best of luck in the future. In our opinion, the business will be in good hands with its new owner. I would also like to take this opportunity to thank Lance Neibauer, the very talented designer of the Columbia aircraft models, for his help in connection with our due diligence efforts." About Park Electrochemical Headquartered in Melville, New York, Park Electrochemical Corp. -- http://www.parkelectro.com/-- develops and manufactures high- technology digital and RF/microwave printed circuit materials (the Nelco(R) product line) and advanced composite materials (the Nelcote(TM) product line) principally for the telecommunications and internet infrastructure, high-end computing and aerospace markets. Park focuses on the general aviation segment of the aerospace market. Park's core capabilities are in the areas of polymer chemistry formulation and coating technology. The company's manufacturing facilities are located in Singapore, China, France, Connecticut, New York, Arizona and California. About Columbia Aircraft Headquartered in Bend, Oregon, Columbia Aircraft Manufacturing Corporation -- http://www.flycolumbia.com/-- manufactures a variety of all-composite aircraft, including the Columbia 400 and employs approximately 440 people. The company filed for Chapter 11 protection on Sept. 24, 2007 (Bankr. D. Ore. Case No. 07-33850). Leon Simson, Esq., Albert N. Kennedy, Esq., and Timothy J. Conway, Esq., at Tonkon Torp LLP represent the Debtor in its restructuring efforts. James Ray Streinz, Esq., and Johnston A. Mitchell, Esq., at McEwen Gisvold LLP serve as counsel to the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and liabilities of $1 million to $100 million. The Debtor's list of its 20 largest unsecured creditors showed total aggregate claims of more than $50 million. COLUMBIA AIR: Cessna Aircraft Wins Auction with $26.4 Million Bid ----------------------------------------------------------------- Cessna Aircraft Company of Textron Inc., was the successful bidder for select assets of Columbia Aircraft Manufacturing Company. The bid of $26.4 million was the high bid in The United States Bankruptcy Court for the District of Oregon. "This is a significant day as it brings together two top aircraft design and production companies to offer the global general aviation community the widest range of propeller aircraft, along with world-class product support, all under the Cessna brand -- one of the most trusted names in aviation," Jack. J. Pelton, Cessna chairman, president and CEO, said. "I would like to thank the 400-plus Columbia employees for their continued hard work and dedication during the bankruptcy process. We look forward to welcoming them to the Cessna family." "The Columbia models are a good fit with our existing product line," Mr. Pelton said. "We look forward to providing existing Columbia owners with improved levels of service and support and introducing new customers to these outstanding aircraft." "We plan to make significant investments in Bend, in people and operations, to bolster customer satisfaction and business profitability," Mr. Pelton said. "We will continue to improve quality, reliability and performance as we strive to deliver customer value and fulfill our commitments." Once the transaction is completed, which is expected to occur by Dec. 4, 2007, the Bend operation will take on the Cessna name and be one of six Cessna manufacturing facilities. Cessna intends to rename the current Columbia product line to become the Cessna 350 and the Cessna 400. Cessna and its network of authorized dealers and service centers plan to integrate sales and support of the former Columbia aircraft, and Cessna Parts Distribution is expected to become the source for parts. Cessna also intends to develop direct communications with current owners. "We feel it's very important for Cessna customers to enjoy a seamless, high-quality experience throughout our entire product line -- from the SkyCatcher all the way up to the Citation X. It only makes sense that we fully embrace these two new aircraft and their owners as members of the Cessna family," Mr. Pelton said. "Current Columbia aircraft owners should feel very secure knowing their investment will now be supported through our vast global customer sales and service network." About Cessna Aircraft Company Headquartered in Wichita, Kansas, Cessna Aircraft Company \u2013- http://www.cessna.com/-- is one of the most famous names in small planes. A subsidiary of Textron, the company manufactures business jets, utility turboprops, and small single-engine planes. Cessna is also a maker of business jets; it makes nine variations of its popular Citation jet. Its utility turboprop plane, the Caravan, has freight, bush, amphibious, and commercial (small connecting flights) applications. Cessna's single-engine planes are typically used for personal and small-business purposes. Cessna also offers fractional ownership programs for its business jets. About Columbia Aircraft Manufacturing Headquartered in Bend, Oregon, Columbia Aircraft Manufacturing Corporation -- http://www.flycolumbia.com/-- manufactures a variety of all-composite aircraft, including the Columbia 400 and employs approximately 440 people. The company filed for Chapter 11 protection on Sept. 24, 2007 (Bankr. D. Ore. Case No. 07-33850). Leon Simson, Esq., Albert N. Kennedy, Esq., and Timothy J. Conway, Esq., at Tonkon Torp LLP represent the Debtor in its restructuring efforts. James Ray Streinz, Esq., and Johnston A. Mitchell, Esq., at McEwen Gisvold LLP serve as counsel to the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and liabilities of $1 million to $100 million. The Debtor's list of its 20 largest unsecured creditors showed total aggregate claims of more than $50 million. COMPASS DIVERSIFIED: Offers Shareholders Reinvestment Plan ---------------------------------------------------------- Compass Diversified Holdings is offering a Distribution Reinvestment Plan to current and prospective shareholders. The Plan permits shareholders to acquire additional shares of CODI automatically with quarterly distributions. The Plan is administered by The Bank of New York. To enroll in the Plan, request an enrollment form or obtain a hard copy of the Plan prospectus, contact The Bank of New York toll-free at 1-877- 296-3711. Headquartered in Westport, Connecticut, Compass Diversified Holdings --www.compassdiversifiedholdings.com/ -- (Nasdaq GS: CODI) is a Delaware statutory trust that was formed on Nov. 18, 2005, to acquire and manage a group of middle market businesses that are headquartered in North America. CODI provides public investors with an opportunity to participate in the ownership and growth of companies which have historically been owned by private equity firms, wealthy individuals or families. Compass Group Diversified Holdings LLC, a Delaware limited liability company, was also formed on Nov. 18, 2005. In accordance with the Trust Agreement, Compass Diversified Holdings is the sole owner of 100% of the trust's Interests of Compass Group Diversified Holdings LLC. Compass Group Diversified Holdings LLC is the operating entity with a board of directors and other corporate governance responsibilities, similar to that of a Delaware corporation. Compass Diversified Holdings is managed by Compass Group Management LLC, which was established in 1998 as a private equity manager for an offshore philanthropic foundation established by J. Torben Karlshoej, the late founder of Teekay Shipping Corporation. * * * As reported in the Troubled Company Reporter on Nov. 9, 2007, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Compass Group Diversified Holdings LLC. The outlook is stable. At the same time, S&P assigned bank loan and recovery ratings to Compass's $200 million first-lien term loan due 2013. The loan is rated 'BB-' with a recovery rating of '4', indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. COUNTRYWIDE HOME: Moody's Junks Ratings on Two Loan Classes ----------------------------------------------------------- Moody's Investors Service has downgraded the ratings of four tranches issued in two separate mortgage transactions. The collateral backing each tranche consists primarily of first-lien, fixed- and adjustable-rate scratch and dent mortgage loans. The deals being reviewed have experienced an increasing proportion of severely delinquent loans while the amount of available credit enhancement has been reduced from losses and stepdown. The timing of losses coupled with passing of performance triggers has caused the protection available to the subordinate bonds to be diminished. Complete rating actions are: Issuer: Countrywide Home Loan Trust 2004-SD1 -- Cl. B-1, Downgraded to Ba1 from Baa1 -- Cl. B-2, Downgraded to Caa1 from Baa2 Issuer: Countrywide Home Loan Trust 2004-SD2 -- Cl. B-1, Downgraded to Ba3 from Baa2 -- Cl. B-2, Downgraded to Ca from Baa3 CREDIT SUISSE: Fitch Lowers Ratings on $209.9MM Transactions ------------------------------------------------------------ Fitch Ratings has taken these rating actions on four Credit Suisse First Boston Home Equity Asset Trust transactions. Affirmations total $1.6 billion and downgrades total $209.9 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: CSFB HEAT 2005-2 -- $81.7 million class A affirmed at 'AAA' (BL: 82.18, LCR: 7.12); -- $38.5 million class M-1 affirmed at 'AA+' (BL: 68.63, LCR: 5.95); -- $35 million class M-2 affirmed at 'AA' (BL: 56.81, LCR: 4.92); -- $24.1 million class M-3 affirmed at 'AA-' (BL: 48.61, LCR: 4.21); -- $20.1 million class M-4 affirmed at 'A+' (BL: 25.49, LCR: 2.21); -- $20.1 million class M-5 affirmed at 'A' (BL: 21.88, LCR: 1.9); -- $16.1 million class M-6 affirmed at 'A-' (BL: 19.12, LCR: 1.66); -- $16.1 million class B-1 affirmed at 'BBB+' (BL: 16.35, LCR: 1.42); -- $14.3 million class B-2 affirmed at 'BBB' (BL: 13.92, LCR: 1.21); -- $8.6 million class B-3 downgraded to 'BB' from 'BBB-' (BL: 12.40, LCR: 1.07); -- $9.7 million class B-4 downgraded to 'BB' from 'BB+' (BL: 11.19, LCR: 0.97). Deal Summary -- Originators: Various Originators -- 60+ day Delinquency: 29.07%, -- Realized Losses to date (% of Original Balance): 1.01%; -- Expected Remaining Losses (% of Current Balance): 11.54%; -- Cumulative Expected Losses (% of Original Balance): 4.0 %. CSFB HEAT 2005-6 -- $187.7 million class A affirmed at 'AAA' (BL: 55.32, LCR: 3.7); -- $29.6 million class M-1 affirmed at 'AA+' (BL: 44.4, LCR: 2.97); -- $26.4 million class M-2 affirmed at 'AA+' (BL: 38.74, LCR: 2.59); -- $15.6 million class M-3 affirmed at 'AA' (BL: 34.31, LCR: 2.29); -- $14.4 million class M-4 affirmed at 'AA-' (BL: 30.20, LCR: 2.02); -- $9.6 million class M-5 affirmed at 'AA-' (BL: 27.44, LCR: 1.84); -- $12.8 million class M-6 affirmed at 'A' (BL: 23.72, LCR: 1.59); -- $10.4 million class M-7 downgraded to 'BBB+' from 'A-' (BL: 20.62, LCR: 1.38); -- $8.8 million class M-8 downgraded to 'BBB' from 'BBB+' (BL: 18.00, LCR: 1.2); -- $7.2 million class B-1 downgraded to 'B' from 'BBB+' (BL: 12.61, LCR: 0.84); -- $7.6 million class B-2 downgraded to 'CC/DR3' from 'BBB'; -- $7.2 million class B-3 downgraded to 'CC/DR3' from 'BB+'; -- $4 million class B-4 downgraded to 'CC/DR3' from 'BB+', removed from Rating Watch Negative. Deal Summary -- Originators: Various Originators -- 60+ day Delinquency: 24.8%; -- Realized Losses to date (% of Original Balance): 1.13%; -- Expected Remaining Losses (% of Current Balance): 14.95%; -- Cumulative Expected Losses (% of Original Balance): 7.69%. CSFB HEAT 2005-7 -- $274.5 million class A affirmed at 'AAA' (BL: 51.61, LCR: 3.27); -- $36.5 million class M-1 affirmed at 'AA+' (BL: 40.58, LCR: 2.57); -- $33 million class M-2 affirmed at 'AA' (BL: 36.41, LCR: 2.3); -- $21 million class M-3 affirmed at 'AA-' (BL: 32.26, LCR: 2.04); -- $16 million class M-4 affirmed at 'A+' (BL: 28.89, LCR: 1.83); -- $16.5 million class M-5 affirmed at 'A' (BL: 25.40, LCR: 1.61); -- $14.5 million class M-6 affirmed at 'A-' (BL: 22.29, LCR: 1.41); -- $14.5 million class M-7 downgraded to 'BBB' from 'BBB+' (BL: 19.11, LCR: 1.21); -- $10 million class B-1 downgraded to 'B' from 'BBB' (BL: 13.61, LCR: 0.86); -- $8.5 million class B-2 downgraded to 'B' from 'BBB' (BL: 12.20, LCR: 0.77), removed from Rating Watch Negative; -- $6 million class B-3 downgraded to 'C/DR4' from 'BBB-', removed from Rating Watch Negative; -- $10 million class B-4 downgraded to 'C/DR5' from 'B+'; -- $5 million class B-5 downgraded to 'C/DR5' from 'B+'. Deal Summary -- Originators: Various Originators -- 60+ day Delinquency: 27.96%; -- Realized Losses to date (% of Original Balance): 1.14%; -- Expected Remaining Losses (% of Current Balance): 15.80%; -- Cumulative Expected Losses (% of Original Balance): 8.68%. CSFB HEAT 2005-8 -- $451.1 million class A affirmed at 'AAA' (BL: 51.05, LCR: 3.18); -- $55.5 million class M-1 affirmed at 'AA+' (BL: 41.42, LCR: 2.58); -- $51 million class M-2 affirmed at 'AA' (BL: 36.7, LCR: 2.28); -- $33 million class M-3 affirmed at 'AA-' (BL: 32.44, LCR: 2.02); -- $24 million class M-4 affirmed at 'A+' (BL: 29.29, LCR: 1.82); -- $24.7 million class M-5 affirmed at 'A' (BL: 26.03, LCR: 1.62); -- $21 million class M-6 affirmed at 'A-' (BL: 23.21, LCR: 1.44); -- $20.2 million class M-7 downgraded to 'BBB' from 'BBB+' (BL: 20.42, LCR: 1.27); -- $15 million class M-8 downgraded to 'BBB-' from 'BBB+' (BL: 18.34, LCR: 1.14); -- $12.7 million class B-1 downgraded to 'BB' from 'BBB' (BL: 16.51, LCR: 1.03); -- $7.5 million class B-2 downgraded to 'B' from 'BBB' (BL: 14.26, LCR: 0.89), and removed from Rating Watch Negative; -- $15 million class B-3 downgraded to 'C/DR5' from 'BBB-', and removed from Rating Watch Negative; -- $11.2 million class B-4 downgraded to 'C/DR5' from 'BB'; -- $10.5 million class B-5 downgraded to 'C/DR5' from 'B+'. Deal Summary -- Originators: Various Originators -- 60+ day Delinquency: 25.6%; -- Realized Losses to date (% of Original Balance): 1.20%; -- Expected Remaining Losses (% of Current Balance): 16.07%; -- Cumulative Expected Losses (% of Original Balance): 10.01%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. CREDIT SUISSE: Fitch Lowers Rating on Class M-3 Certs. to B ----------------------------------------------------------- Fitch Ratings has taken rating action on Credit Suisse First Boston Home Equity Asset Trust transactions: CSFB HEAT, series 2002-5 -- Class M-1 affirmed at 'AA'; -- Class M-2 downgraded to 'BBB' from 'A'; -- Class B-1 downgraded to 'CCC/DR1' from 'B+'. CSFB HEAT, series 2003-2 -- Class A-IO affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 downgraded to 'BBB' from 'A-'; -- Class M-3 downgraded to 'B' from 'BBB-'; -- Class B-1 downgraded to 'CCC/DR1' from 'B'; -- Class B-2 remains at 'C', and the DR is revised to 'DR6' from 'DR5'. The collateral of the above transactions consists of first and second lien fixed-rate and adjustable-rate subprime mortgage loans. All of the mortgage loans were purchased by an affiliate of Credit Suisse First Boston Mortgage Securities Corp. from various sellers in secondary market transactions. The affirmations affect approximately $57.1 million in outstanding certificates and reflect adequate relationships of credit enhancement to future loss expectations. The classes with negative actions reflect the deterioration in the relationship of CE to future loss expectations and affect $17.5 million in outstanding certificates. The overcollateralization of series 2002-5 has been declining over the past year and is currently providing 1.99% in CE to the B1 bond. The OC of series 2003-2 been completely exhausted for the past five months. As of the October 2007 remittance period, 60+ delinquencies for series 2002-5 and 2003-2 is 23.51% and 32.55%, respectively. Furthermore, the pool factors are less than 10% which increases the chance of adverse selection to the trusts. The mortgage loans are being serviced by Select Portfolio Servicing, Inc., rated 'RPS2+' by Fitch Ratings. CRESTED CORP: Completes Merger Deal with U.S. Energy ---------------------------------------------------- Crested Corp. shareholders voted in favor of the Agreement and Plan of Merger to merge into U.S. Energy Corp. The merger was completed on Nov. 27, 2007, and Crested has been merged into USEG pursuant to Colorado and Wyoming law. As a result, Crested has ceased to exist and all outstanding shares of Crested have been converted into the right to receive USEG shares, and Crested will terminate its obligations to file further information with the SEC. In accordance with the agreement and USEG's effective Form S-4 registration statement for the transaction, USEG will issue up to 2,876,188 shares of common stock to all former shareholders of Crested, on an exchange ratio of 1 USE share for every 2 Crested shares. Computershare Trust Company, transfer agent for USE and the exchange agent for the merger consideration, will issue USE shares to the former Crested shareholders in due course as the Crested shares are presented for exchange. USEG shares issued to the former minority shareholders of Crested will not be restricted. On a pro forma basis, USEG will have 23,963,584 shares outstanding. "The merger of Crested Corp. into U.S. Energy Corp. presents a significant milestone in the company's history," Keith Larsen, CEO of U.S. Energy Corp. said. "Management's goal is to streamline, simplify and make the company more transparent while building shareholder value." "With the approval of the merger, U.S. Energy Corp. now owns 100% of all assets previously jointly held jointly with Crested Corp.," Mr. Larsen added. "This includes the world-class Lucky Jack molybdenum deposit located in west central Colorado that is being developed through our venture with Kobex Resources Ltd." About US Energy Corp. Headquartered in Riverton, Wyoming, US Energy corp. -- http://www.usnrg.com/-- is a diversified natural resource company with interests in molybdenum, gold and oil & gas. About Crested Corp. Headquartered in Riverton, Wyoming, Crested Corp. (OTC BB: CBAG) develops and leases mineral properties. The company primarily focuses on hard rock minerals, including lead, zinc, silver, molybdenum, gold, uranium, and oil and gas properties. It also engages in the production of petroleum properties and marketing of minerals through equity investees. Going Concern Doubt Moss Adams LLP cited several factors that raise substantial doubt about the ability of Crested Corp. to continue as a going concern after auditing the company's financial statements as of Dec. 31, 2006. The factors were the company's significant losses from operations and working capital deficit of $3,730,800 as of Dec. 31, 2006. Moss Adams also stated that a substantial portion of Crested's obligation is owed to an affiliated entity. CROWN CASTLE: Fitch Holds 'BB' Rating on $83MM Class G Notes ------------------------------------------------------------ Fitch Ratings has affirmed these classes of Crown Castle, senior secured tower revenue notes, series 2005-1: -- $948,460,000 class A-FX at 'AAA'; -- $250,000,000 class A-FL at 'AAA'; -- $233,845,000 class B at 'AA'; -- $233,845,000 class C at 'A'; -- $233,850,000 class D at 'BBB'. Fitch Ratings has also affirmed these classes of Crown Castle, senior secured tower revenue notes, series 2006-1: -- $453,540,000 class A-FX at 'AAA'; -- $170,000,000 class A-FL at 'AAA'; -- $150,155,000 class B at 'AA'; -- $150,155,000 class C at 'A'; -- $150,150,000 class D at 'BBB'; -- $144,000,000 class E at 'BBB-'; -- $240,000,000 class F at 'BB+'; -- $83,000,000 class G at 'BB'. The affirmations are due to the stable performance of the collateral. The Crown Castle, series 2005-1 closed on June 8, 2005 and was secured by 10,578 wireless communication sites. The Crown Castle, series 2006-1 represents an additional issuance with the contribution of 949 additional sites. As of September 2007, the collateral pool included 11,554 wireless communication sites owned, leased, or managed by the borrower. The notes issued by both transactions, which are secured by the same pool, are pari passu among like rated classes. As of the October 2007 distribution date, the aggregate principal balance of the notes remained unchanged at $3.45 billion since issuance. Notes from both issuances are interest only for the entire five- year period. As part of the review, Fitch analyzed the management report dated Sept. 30, 2007 that was provided by the servicer, Midland Loan Services. As of Sept. 30, 2007, aggregate annualized run rate revenue increased 4.2% to $686.9 million from $644.5 million at issuance. Over the same time period, the Fitch adjusted net cash flow increased 3% since issuance. The tenant type concentration is stable. As of Sept. 30, 2007, total revenue contributed by telephony tenants was 94.7% compared to 95.9% at issuance. CROWN HOLDINGS: Completes Share Repurchase Deal with BNP Paribas ---------------------------------------------------------------- Crown Holdings Inc. has completed its accelerated share repurchase agreement with BNP Paribas. Pursuant to the agreement, the company purchased 4,234,077 shares of its common stock for $100 million. On Aug. 27, 2007, Crown Holdings has entered into a definitive agreement with BNP Paribas to purchase shares of its common stock for approximately $100 million under an accelerated share repurchase program. Pursuant to the agreement, the company has purchased 4,088,068 shares immediately from BNP Paribas and may potentially receive additional shares upon completion of the transaction. The final number of shares to be repurchased will be based on the company's volume-weighted average stock price during the term of the transaction. To date in 2007, the company has purchased 4,974,892 shares for $118 million. About Crown Holdings Inc. Based in Philadelphia, Pennsylvania, Crown Holdings Inc. (NYSE: CCK) -- http://www.crowncork.com/-- through its affiliated companies, supplies packaging products to consumer marketing companies around the world. In Latin America, the company has operations in Mexico, and in South and Central America. The company also maintains operations in Europe, particularly in the United Kingdom and France. In the Asia-Pacific region, the company has an office in Singapore. Crown Holdings, Inc., through its subsidiaries, is a leading supplier of packaging products to consumer marketing companies around the world. The company's consolidated balance sheet at Sept. 30, 2007, showed $6.949 billion in total assets, $7.335 billion in total liabilities, resulting in a $386 million total shareholders' deficit. CSFB 2004-CF1: Moody's Lowers Rating on Class B Loan to B3 ---------------------------------------------------------- Moody's Investors Service has downgraded the rating of one tranche issued in the CSFB 2004-CF1 mortgage transaction. The collateral backing each tranche consists primarily of first-lien, fixed- and adjustable-rate scratch and dent mortgage loans. The deal being reviewed has seen the amount of available credit enhancement reduced from losses and step-down. The timing of losses coupled with passing of performance triggers has caused the protection available to the subordinate bonds to be diminished. Complete rating actions are: Issuer: CSFB 2004-CF1 -- Cl. B; Downgraded to B3 from Baa2 CYRUS REINSURANCE: Moody's Rates $65MM Sr. Secured Loan at Ba1 -------------------------------------------------------------- Moody's has assigned these ratings to three proposed bank loans of Cyrus Reinsurance II Limited : Ba1 to the $65 million senior secured term loan, Ba3 to the $20 million senior subordinated secured term loan, and B3 to the $20 million junior subordinated secured term loan. "Cyrus Re II is a type of limited purpose reinsurer that is commonly referred to as a 'sidecar'," explains senior analyst Kevin Lee. "The sidecar will be capitalized with $35 million of equity and $105 million of term loans (75% debt, 25% equity)," notes Mr. Lee. "The term loans are arrayed in tranches, each having a different probability of attachment, expected loss, and priority with respect to interest and principal payments, hence the difference in ratings." Cyrus Re II is expected to provide collateralized quota share coverage exclusively to two subsidiaries of XL Capital Ltd -- XL Re Ltd (Aa3/stable) and XL Re Europe Ltd. If the quota share agreement is executed, the Ceding Companies will pass on (cede) -- and Cyrus Re II will assume -- 10% of the premiums and losses on a future portfolio of non-proportional catastrophe reinsurance contracts. Those underlying contracts will be written in 2008 and will cover natural catastrophe risks throughout the world. The future portfolio is expected to be similar to the Ceding Companies' existing portfolio as client retention tends to be relatively high. This quota share agreement, if executed, will be distinct and separate from the Ceding Companies' previous sidecar, Cyrus Reinsurance Limited. The ratings for the term loans are supported by Moody's financial modeling to determine both the probability of default and expected loss to lenders. The most important inputs into the financial model are the annual aggregate probability loss curve derived by the Ceding Companies, premium assumptions, and investment income assumptions. Moody's applied stress factors and performed sensitivity analysis on all three inputs. The PDs and ELs from our simulation runs were then compared to Moody's idealized default rates and expected loss rates over a weighted average life of about 1.7 years for each loan. Finally, the assigned ratings also reflect, in our opinion, sufficient alignment of interests between stakeholders. Key rating factors include: 1) Model Risk: Catastrophe modeling error is the most important risk factor. The Ceding Companies modeled their existing portfolio using RMS 6.0 peril models that are common in the industry. Parameter uncertainty, the quality of input data, and how the models are used can all contribute to modeling error. In general, the current portfolio is diversified with respect to geography and layers of coverage. A majority of the current portfolio consists of personal lines and standard commercial risks which generally offer more homogeneous data than industrial and surplus lines risks. The Ceding Companies receive exposure data from clients or brokers for nearly all underlying contracts, allowing the Ceding Companies to duplicate the modeling work with all discretionary settings applied. One notable exception is assumed retrocession business (2.5% of current portfolio limits), for which exposure data isn't available, but is nonetheless modeled by the Ceding Companies. Many of the covered perils are modeled using RMS 6.0 peril models. European Flood, European Earthquake and attritional losses are modeled using in-house curve fitting methods. Moody's has applied a moderate load to the Base Curve to account for these elements: 1) potential deviations from the expected portfolio; 2) difficult-to-model classes of business such as industrial and surplus lines risks (estimated to be roughly 20% of current portfolio limits); 3) non-modeled contract elements such as loss adjustment expenses and extra-contractual obligations; 4) inherent uncertainty in peril modeling especially as it relates to perils like earthquakes where little historical data is available for model calibration; and 5) a small load for perils that are not modeled by any methods such as volcanic eruption, meteorite impact, tsunami, domestic terrorism and industrial/residential conflagration. 2) Defaults are Sensitive to Rate and Investment Income Assumptions: Moody's analysis suggests that default rates and expected loss rates to debt holders are sensitive to assumptions about premium rates and investment yields. This is fairly intuitive given that equity capital is thin (75% debt, 25% equity) and tranche attachment points are relatively low. That is to say, investors will have to rely more on premium income and investment income to defray losses. Premium rates in 2008 are uncertain. In Moody's financial modeling, Moody's have modeled for the possibility that rates may fall up to 20% from their 2007 levels. Additionally, Moody's have modeled investment returns stochastically. 3) Alignment of Interests: In Moody's opinion, there is adequate alignment of interests between stakeholders given that the Ceding Companies will retain 90% of premiums and losses with ample skin in the game. Additionally, any reinsurance purchased by the Ceding Companies for its retained portfolio would inure to the benefit of the sidecar. Dividend distributions to shareholders are prohibited, mitigating some of our concerns about the highly levered capital structure. 4) Cash Waterfall: At each quarterly interest payment date, trust assets that exceed loss reserves and a reserve cushion can be released to pay interest. However, capacity must exist to fully pay all remaining scheduled interest and principal on the senior secured term loans before any trust capital can be released to pay interest and principal on the senior subordinated or junior subordinated loans. The same rule applies to the priority of payments between the senior subordinated and junior subordinated loans. This cash waterfall is reflected in Moody's financial modeling. These ratings have been assigned with a stable outlook: * Cyrus Reinsurance II Limited -- $65 million senior secured term loan at Ba1; * Cyrus Reinsurance II Limited -- $20 million senior subordinated secured term loan at Ba3; * Cyrus Reinsurance II Limited -- $20 million junior subordinated secured term loan at B3. Cyrus Reinsurance II Holdings SPC is majority-owned by investment funds affiliated with Highfields Capital Management LP. Its subsidiary, Cyrus Reinsurance II Limited, is a Class 3 Bermuda reinsurer that is expected to enter into a collateralized quota share reinsurance treaty with XL Re Ltd and XL Re Europe Ltd. The treaty will cover policies incepting between Jan. 1, 2008 and Jul. 1, 2008. Lenders will be at risk for events occurring between Jan. 1, 2008 and Jul. 1, 2009. Capital cannot be returned to investors before September 1, 2009 and equity capital cannot be returned to shareholders until all three loans have been repaid. DANKA BUSINESS: Delists American Depositary Shares from Nasdaq -------------------------------------------------------------- Danka Business Systems PLC's board of directors has determined to voluntarily delist its American Depositary Shares from the Nasdaq Capital Market and move them to the OTC Bulletin Board. The company's ordinary shares are unaffected by this action and will continue to trade on the London Stock Exchange. "To be clear, our primary listing is in London and remains unchanged," Danka chairman and chief executive officer A.D. Frazier stated. "As such, this decision does not impact the company's financial status, nor will it have an effect on the way we conduct our business or on the nature of our existing and future customer and partner relationships. This has been a year of transformation for Danka, highlighted just last week with the signing of two separate partnership initiatives designed to further reinforce the company's independent leadership position in the enterprise imaging marketplace." The board at this conclusion subsequent to a deficiency notification from the Nasdaq Listing Qualifications staff received on Nov. 20, 2007, stating that the company was not in compliance with the stockholders' equity/market value of listed securities/net income continued listing requirement set forth in Nasdaq Marketplace Rule 4310(c)(3). Under Nasdaq rules, if the company did not submit a plan of compliance on or before Dec. 5, 2007, and did not regain compliance with the market value of listed securities requirement for a minimum of 10 consecutive business days within 30 calendar days from the date of the deficiency notification, Nasdaq Staff would have provided written notification to Danka that its ADSs would be delisted. At that time, the company would have been permitted to appeal the Nasdaq Staff determination to a Nasdaq Listing Qualifications Panel. The board determined, after careful consideration of various business, legal, shareholder and compliance aspects of this matter, not to submit a plan of compliance and, instead, that voluntarily delisting and moving the company's ADSs to the OTC Bulletin Board is in the overall best interests of the Company's shareholders. These factors, among others, were considered by the board in taking this action: -- the reduction in costs associated with maintaining two separate exchange listings; -- that the London Stock Exchange will continue to be the company's primary market as it is not necessary to maintain two separate exchange listings; -- the continued availability of quotations and last sale information in the company's ADSs on the OTC Bulletin Board; and -- the fact that the company will remain a reporting company for SEC purposes and will continue to comply with all reporting requirements. The company received a letter on Aug. 29, 2007, from Nasdaq indicating that the company was not in compliance with the continued listing requirement for minimum bid price on The Nasdaq Capital Market because the bid price of Danka's ADSs had closed below the minimum $1 per share requirement for more than 30 consecutive days. The OTC Bulletin Board is neither a "listed" market nor a "stock exchange." Instead, it operates as a voluntary electronic quotation system that allows market makers to enter quotations in a security and offers investors real-time access to quotes, last- sale prices and volume information in over-the-counter equities. The company will file an application with the Securities and Exchange Commission on Form 25 to voluntarily delist its ADSs from the Nasdaq Capital Market. The delisting becomes effective ten days after the Form 25 is filed. The Form 25 is expected to be filed on or about Dec. 7, 2007. About Danka Business Systems plc Based in London, England, Danka Business Systems PLC (LON:DNK) -- http://www.danka.com/-- is a provider of document solutions, including office imaging equipment, software, support, and related services and supplies in the United States. It offers office imaging products, services, supplies and solutions, including digital and color copiers, digital and color multifunction peripherals printers, facsimile machines and software. It also provides contract services, including professional and consulting services, maintenance, supplies, leasing arrangements, technical support and training, collectively referred to as Danka Document Services. At Sept. 30, 2007, the company's balance sheet showed total assets of $241.5 million and total liabilities of $588.8 million, resulting to a shareholders' deficit of $347.3 million. DECORDOVA/PERMIAN: Fitch Assigns 'B/RR4' Rating on 7.48% Bonds -------------------------------------------------------------- Fitch has assigned a 'B/RR4' rating to the 7.48% Decordova/Permian Basin secured facility bonds that mature Jan. 1, 2017. In addition, Fitch assigns a 'B/RR4' rating to the 7.46% Morgan Creek/Permian Basin secured facility bonds that mature Jan. 1, 2015. The Rating Outlook of the primary lease obligor Texas Competitive Electric Holding (TCEH; Issuer Default Rating 'B'), and the co-obligor Energy Future Competitive Holding (EFCH; IDR 'B) are Stable. Both series of bonds are secured by certain peaking generation units, the related ground leases and rights under the leases. The facilities are located in Texas. The Decordova/Permian bonds are secured by four Decordova peaking units with total capacity of 260 megawatts and two Permian Basin units with 130MW of capacity. The Decordova and Permian units started commercial operation in 1989. The Morgan Creek/Permian Basin bonds are secured by nine peaking units with 585MW of total capacity. The six Morgan Creek units and three Permian Basin units were placed into service in 1988 and 1987, respectively. The plants are maintained to utility standards and there have been no significant operating issues. There are no plans to retire or mothball the units. Fitch valued the peaking unit collateral packages in a stress scenario to establish estimates for recovery value to position the ratings of the secured facility bonds relative to the IDR of TCEH, which includes an average recovery assumption of 30%-50%. Fitch used its proprietary power pricing model to calculate the net present value of future cash flows from the units based on a single dispatch and price scenario and on an alternate scenario that uses the observed volatility of power prices to estimate the option value of the facilities, with cash flows discounted at a 10% discount rate. Fitch notes that it is more challenging to value peaking units than other power generation assets that have more predictable usage. Fitch accorded relatively less weight to future option value. In Fitch's opinion, the peaking units have average recovery prospects and are thus rated at the same 'B' level as the IDR of the lessee and co-obligor. DEERFIELD TRIARC: Moody's Cuts Corporate Family Rating to Ba3 ------------------------------------------------------------- Moody's Investors Service has downgraded Deerfield Triarc Capital Corp's corporate family rating to Ba3, from Ba2. Concurrently, Moody's has withdrawn provisional (P)B1 senior secured term loan rating assigned to the REIT's external manager Deerfield & Company LLC. Rating outlook is negative. According to Moody's, these rating actions reflect the REIT's lack of progress in consummating a merger with its external advisor, Deerfield & Company LLC, as well as deterioration in the company's earnings and financial profile due to stress in the structured finance markets. The negative rating outlook reflects uncertainty associated with the REIT's earnings trajectory, asset quality of its alternative asset portfolio and overall liquidity position due to the continuing dislocations in the credit markets. Deerfield's Ba3 corporate family rating continues to reflect the REITs diverse portfolio, which includes high quality, highly liquid mortgage securities. Sound risk management and adequate liquidity are underpinnings of the ratings. Moody's stated that a return to a stable outlook would be contingent upon the REIT's ability to return to profitability as demonstrated by two consecutive quarters of positive earnings, stabilization in the asset quality of its alternative asset portfolio and preservation of the liquidity cushion maintained to protect its RMBS portfolio. Conversely, a rating downgrade would most likely result from further sustained deterioration in earnings, additional decline in the asset quality of the REIT's alternative asset portfolio, and pressure on its liquidity position. This rating was downgraded: * Deerfield Triarc Capital Corp. -- Corporate family rating to Ba3, from Ba2. This rating will be withdrawn: * Deerfield & Company LLC -- Senior secured term loan at (P)B1. Deerfield Triarc Capital Corp. [NYSE: DFR] is a diversified financial company, structured as a REIT, that invests in single- family mortgage securities and various other asset classes. DENNY'S INC: Credit Repayment Cues S&P to Revise Rating to BB ------------------------------------------------------------- Standard & Poor's Ratings Services revised its bank loan rating on Denny's Inc.'s $350 million bank facility to 'BB', two notches above the corporate credit rating on parent Denny's Corp. (B+/Stable/--), from 'BB-'. S&P have also revised the recovery rating on this debt issue from '2' to '1', reflecting our expectation for very high (90%-100%) recovery of principal in the event of a payment default. "The action reflects a meaningful repayment of the credit facility