T R O U B L E D C O M P A N Y R E P O R T E R Friday, December 28, 2007, Vol. 11, No. 306 Headlines ABS CAPITAL: Moody's Lowers Two Notes' Ratings to B1 from Baa2 ABS CAPITAL: Full Payment Cues Moody's to Withdraw Rating ACE SECURITIES: S&P Junks Ratings on Four Certificates ADVENTURE PARKS: Has Until March 17 To File Chapter 11 Plan AEGIS MORTGAGE: Fitch Retains Junk Rating on Class B1 Certs. AIG GLOBAL: Deal Termination Cues Moody's to Withdraw Ratings ALBERT BATTISTE: Voluntary Chapter 11 Case Summary AMERIQUEST MORTGAGE: Fitch Downgrades Ratings on 12 Classes ARGENT SECURITIES: Fitch Junks Rating on $10MM Class M-12 Cert. ARMANI INVESTMENT: Section 341(a) Meeting Slated for January 10 ASSET BACKED: Fitch Places 'BB' Ratings Under Negative Watch AYERSOME CDO: Moody's Cuts Rating on $9.25 Mil. Notes to Ba2 BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to B BARNHILL'S BUFFET: Has Until December 31 to File Schedules BEAR STEARNS: Fitch Downgrades Ratings on $200.5MM Certificates BEAR STEARNS: $854MM Loss Cues Fitch to Retain Negative Outlook BEATRIZ CINTRON: Case Summary & 15 Largest Unsecured Creditors BILLING SERVICES: Closes Wireless Services Biz Sale to Syniverse BLACKROCK INC: Cash Fund Rating Gets a Downgrade from Moody's BLOCKBUSTER INC: Fitch Holds 'CCC' Rating on Subordinated Notes BOISE PAPER: Moody's Puts Ba2 Rating on Proposed First Lien Debt BRENDAN GRIFFIN: Case Summary & Six Largest Unsecured Creditors CALPINE CORP: Claims Against Directors Unjustified, Rosetta Says CAPITAL EXCAVATING: Case Summary & Two Largest Unsecured Creditors CARLTON COVE: In Negotiations with Potential Buyers CARROLS CORP: Sept. 30 Balance Sheet Upside-Down by $13 Million CASTLETON GRP: Liquidates After Shutdown & Insolvency Disclosures CHARLES BRUTI: Case Summary & Nine Largest Unsecured Creditors CHASE COMMERCIAL: Fitch Affirms 'B-'Rating on $9.5MM Certs. CHASE MORTGAGE: Fitch Rates $1.47MM Class B-4 Certificates at B CINRAM INT'L: Implements Changes to Internal Debt Structure CINRAM INT'L: Paying December 2007 Distributions on January 15 CITICORP MORTGAGE: Fitch Affirms 'BB' Rating on Class B-4 Cert. CITIGROUP MORTGAGE: Fitch Junks Rating on Class III-B5 Loans CONSECO INC: Ongoing Fin'l. Concerns Cue Fitch to Lower Ratings COOKSON 2007-31: Moody's Junks Ratings on Two Note Classes CREDIT SUISSE: Fitch Cuts Ratings on Three Certificate Classes CREDIT SUISSE: S&P Downgrades Rating on Class II-B-3 Cert. to B CREST 2000-1: Moody's May Upgrade B2 Rating on Class D Notes CSFB ABS: S&P Junks Rating on Class M-2 Cert. Series 2001-HE20 DENVER RADIO: Case Summary & 20 Largest Unsecured Creditors DOLLARAMA GROUP: Earns CDN$16.6 Mil. in Quarter Ended November 4 EAGLE MEADOWS: Voluntary Chapter 11 Case Summary EDDIE BAUER: Makes $20 Million Voluntary Long-Term Debt Prepayment ENCYSIVE PHARMA: Gets Nasdaq's Bid Price Non-Compliance Notice FEDDERS CORP: Want Exclusive Plan Filing Period Moved to June 17 FEDERAL-MOGUL: Emerges From Bankruptcy Protection in Delaware FREEDOM COMMS: Suspended GE Talks Defer Planned Stake Buyout FREMONT HOME: Fitch Takes Rating Actions on Various Classes GENERAL CABLE: Gregory Kenny Steps Down as President and CEO GEORGIA-PACIFIC: Fitch Holds Low-B Ratings with Stable Outlook GIRASOLAR INC: Posts $482,501 Net Loss in Third Quarter GLACIER FUNDING: Poor Credit Quality Cues Moody's Ratings Review GLACIER FUNDING: Moody's Junks Rating on Class D Notes from Ba2 GMAC COMMERCIAL: Fitch Affirms 'B-' Rating on $4.8MM Certs. GMAC COMMERCIAL: Fitch Holds 'B+' Rating on $8.8MM Certificates HELIX ENERGY: Completes $550 Mil. Offering of 9.5% Senior Notes HIGHLANDS INSURANCE: Ch. 15 Recognition Hearing Set for Jan. 22 HOLLADAY HOUSE: Case Summary & 20 Largest Unsecured Creditors HOPE SHELTER: Case Summary & 14 Largest Unsecured Creditors IMPAC MORTGAGE: Net Loss Rises to $1.2BB in Qtr. Ended Sept. 30 INTERSTATE BAKERIES: Ct. Denies Appeal Asking Yucaipa to File Plan JAMES OLDHAM: Voluntary Chapter 11 Case Summary JPMMC 2006-FL2: Loan Performance Cues Fitch to Affirm Ratings JP MORGAN: Stable Performance Cues Fitch to Affirm Ratings LB-UBS COMMERCIAL: Fitch Retains Junk Rating on $9.9MM Certs. LEAP WIRELESS: Posts $43 Million Net Loss in Third Quarter of 2007 LENOX CDO: Moody's Lowers Rating on Class E-1 Notes to Ba1 LEVITT AND SONS: Brings In Gankler Brown as Special Counsel LEVITT AND SONS: LAS Shelby Obtains Court Nod to Sell Properties LEVITT AND SONS: Obtains Court Nod to Release Resale Restriction LONG BEACH: Fitch Takes Rating Actions on Various Classes LUMINENT MORTGAGE: Sept. 30 Balance Sheet Upside-Down by $90.5 M. LUMINENT MORTGAGE: Declares Then Suspends Dividends of $13.6 Mil. LUMINENT MORTGAGE: Denies Repo Lender's Default Allegations MERRILL LYNCH: Fitch Retains Negative Outlook Despite Efforts MERRILL LYNCH: Fitch Slashes Rating on $6MM Certs. from A- to BB M FABRIKANT: Banks' Objections Derail Plan Confirmation MKP CBO: Moody's Junks Rating on $18 Million Class B Notes MORTGAGE ASSET: Fitch Rates $1.671MM Class B-4 Certs. at BB MULTIFAMILY CAPITAL: Fitch Holds 'BB' Rating on $3.6MM Bonds MYSTIC POINT: Moody's Junks Rating on $32.5 Mil. Notes from A3 N-45O FIRST: Fitch Rates CDN$9.1 Million Class F Bonds at B+ NETBANK INC: CEO Steven Herbert to Leave Post by December 31 NEW LEAF: Case Summary & 17 Largest Unsecured Creditors NEWHALL CAPITAL: Voluntary Chapter 11 Case Summary NITAR TECH: Posts $158,633 Net Loss in 1st Quarter Ended Oct. 31 NOVASTAR MORTGAGE: Fitch Lowers Ratings on $191.5MM Certificates NOVEMBER 2005 LAND: Moody's Junks Corporate Family Rating OMEGA HEALTHCARE: Inks Pact With IRS on Party Tenant Issues OPTION ONE: Fitch Junks Ratings on Two Certificate Classes PARK PLACE: Fitch Junks Rating on $9.1 Million Class M-11 Certs. PEOPLE'S CHOICE: Fitch Cuts Ratings on Three Cert. Classes to B POPE & TALBOT: May Employ Pachulski Stang as Bankruptcy Co-Counsel POPE & TALBOT: May Employ Shearman Sterling as Bankruptcy Counsel POPE & TALBOT: Asks Court Approval to Assign Contracts to InterFor PORT BARRE: S&P Maintains B+ Senior Secured Debt Rating RED MOUNTAIN: Fitch Affirms 'B-' Rating on $8.7MM Certificates RENAISSANCE HOME: Fitch Junks Rating on Class B Loan RITCHIE MULTI-STRATEGY: Investors File Involuntary Ch. 11 Petition RIVER ROCK: Case Summary & Largest Unsecured Creditor RURAL/METRO CORP: Sept. 30 Balance Sheet Upside-Down by $113 Mil. SALANDER-O'REILLY: Restructuring Officer Wants ArtWorks Returned SCAN INT'L: Case Summary & 20 Largest Unsecured Creditors SECURITIZED ASSET: Fitch Puts Low-B Ratings on Four Cert. Classes SENIOR HOUSING: Fitch Holds 'BB+' Issuer Default Rating SOLSTICE ABS: Moody's Lowers Baa3 Rating on $50 Mil. Notes to B3 SOUNDVIEW HOME: Fitch Chips Ratings on $481.4MM Certificates SOUTHAVEN POWER: Wants Until April 14 to File Chapter 11 Plan STRUCTURED ASSET: Fitch Junks Rating on $11.1MM Class M9 Certs. STRUCTURED ASSET: S&P Junks Ratings on $79.795 Mil. Debentures SURETY CAPITAL: Surety Bank CEO Boasts of $35 Million Assets TABS 2006-5: Moody's Cuts Ba2 Rating on $950 Mil. Notes to B3 TABS 2007-7: Moody's Junks Rating on $352.5 Mil. Class A1J Notes TAPESTRY PHARMA: Gets Nasdaq's Bid Price Non-Compliance Notice THOMAS HELTON: Voluntary Chapter 11 Case Summary TRAINER WORTHAM: Moody's Junks Ratings on Class D Notes TRICADIA CDO: Moody's Cuts and Reviews Rating on Class A-1VF Notes TROPICANA ENT: Inks One Year Forbearance Pact with Senior Lenders TURNER & ASSOCIATES: Case Summary & 10 Largest Unsecured Creditors UBS MORTGAGE: Fitch Cuts Ratings on Two Cert. Classes to BB UNITED RENTALS: Moody's Lifts Sr. Debt Rating to B1 from Caa1 VITALTRUST BUSINESS: Sept. 30 Balance Sheet Upside-Down by $22 M. VP CBO: Fitch Revises DR Rating on $94MM Junked Notes to DR6 WAMU COMMERCIAL: Stable Performance Cues Fitch to Hold Ratings WELLS FARGO: Fitch Assigns 'B' Rating on $536,000 Certificates WESTWAYS FUNDING: Uncertain Sale Proceeds Cue Fitch's Low Ratings * PJM Interconnection Gives Steps to Avoid Future Defaults to FTRs * Two Gesas Pilati Lawyers Join Arnstein & Lehr's Bankruptcy Unit * Fitch Lowers Ratings on $6.9 Billion Notes Across 15 CDOs * BOOK REVIEW: A Legal History of Money in the United State ********* ABS CAPITAL: Moody's Lowers Two Notes' Ratings to B1 from Baa2 -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible downgrade these notes issued by ABS Capital Funding II, Ltd.: Class Description: $6,000,000 Class C-1 Floating Rate Term Notes, Due 2037 -- Prior Rating: Baa2 -- Current Rating: B1, on review for possible downgrade Class Description: $12,000,000 Class C-2 Floating Rate Term Notes, Due 2037 -- Prior Rating: Baa2 -- Current Rating: B1, 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. ABS CAPITAL: Full Payment Cues Moody's to Withdraw Rating --------------------------------------------------------- Moody's Investors Service withdrew its ratings on this note issued by ABS Capital Funding II, Ltd.: 1)$10,000,000 Class C-2 Combination Notes, Due 2037 According to Moody's, Class C-2 Combination Notes got paid in full. ACE SECURITIES: S&P Junks Ratings on Four Certificates ------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on 19 classes of asset-backed pass-through certificates from four Ace Securities Corp. Home Equity Loan Trust deals. Nine of the classes were downgraded to speculative-grade from investment- grade. Concurrently, S&P affirmed its ratings on all of the outstanding classes of mortgage pass-through certificates from these four series. The table below shows the current performance data of the four series. Performance Data Cum. realized Severe Series losses (i) delinq. (ii) ------ ------------- ------------ 2002-HE1 3.65% 26.30% 2004-RM2 1.29% 24.00% 2005-HE3 1.58% 33.21% 2006-FM1 1.68% 21.59% (i) As a percentage of original pool balance. (ii) As a percentage of current pool balance. Current pool bal. Months Series (Percentage of orig. pool bal.) seasoned ------ ------------------------------- -------- 2002-HE1 5.87% 63 2004-RM2 13.92% 34 2005-HE3 31.28% 30 2006-FM1 70.01% 14 S&P lowered its rating on class M-3 from series 2002-HE1 to 'D' from 'CCC' because it has taken principal write downs. The downgrades of class M-1 and M-2 reflect an erosion in credit support caused by the reduction in subordination due to the principal write down and by monthly losses exceeding excess interest consistently for the last 12 months resulting in the elimination of overcollateralization (O/C). As of the November 2007 remittance period, monthly losses for the last three months averaged $404,796, while the average monthly excess interest was $97,335. At the current loss levels, current and projected credit support percentages are not sufficient to support the ratings at their previous levels. S&P lowered its rating on class B-5 from series 2004-RM2 to 'D' from 'CCC' because it has taken a principal write down. The downgrades of classes M-6, M-7, B-1, B-2, B-3, and B-4 reflect the increasing losses that are outpacing monthly excess interest, eliminating O/C. As of the November 2007 remittance period, monthly losses for the last three months averaged $862,403, while the average monthly excess interest was $243,758. The losses for November 2007 are approximately 13x higher than 12 months ago. At the current loss levels, current and projected credit support percentages are not sufficient to support the ratings at their previous levels. S&P lowered its rating on class B-3 from series 2005-HE3 to 'D' from 'CCC' because it has taken a principal write down. As of the November 2007 remittance period, monthly losses for the last three months averaged $1,294,866, while the average monthly excess interest averaged $967,425. In addition, the monthly losses have exceeded excess interest for the last six months, eliminating O/C. S&P lowered its rating on class M-11 from series 2006-FM1 to 'D' from 'CCC' because it has taken a principal write down. The downgrades of classes M-3, M-4, M-5, M-6, M-7, M-8, and M-9 reflect the increasing losses that are outpacing monthly excess interest, eliminating O/C. As of the November 2007 remittance period, monthly losses for the last three months averaged $6,643,397, while average monthly excess interest was $1,727,264. The high average monthly losses were predominantly influenced by the $12,511,802 loss in November. At the current loss levels, current and projected credit support percentages are not sufficient to support the ratings at their previous levels. The delinquency pipeline in many of these transactions strongly suggests that the trend of realized losses generally outpacing excess interest will continue, further compromising credit support. S&P affirmed its ratings on the remaining classes from the 2002- HE1, 2004-RM2, 2005-HE3, and 2006-FM1 series based on loss coverage percentages that are sufficient to maintain the current ratings despite the negative trends in the underlying collateral of many of the deals. Subordination, O/C, and excess spread provide credit support for all of the affected deals. The collateral for these transactions primarily consists of subprime, adjustable- and fixed-rate mortgage loans secured by first liens on one- to four-family residential properties. Ratings Lowered Ace Securities Corp. Home Equity Loan Trust Asset-backed pass-through certificates Rating ------ Series Class To From ------ ----- -- ---- 2002-HE1 M-1 BB AA+ 2002-HE1 M-2 B BB 2002-HE1 M-3 D CCC 2004-RM2 M-6 BB A+ 2004-RM2 M-7 B+ A 2004-RM2 B-1 B A- 2004-RM2 B-2 B- BBB 2004-RM2 B-3 CCC B 2004-RM2 B-4 CCC B- 2004-RM2 B-5 D CCC 2005-HE3 B-3 D CCC 2006-FM1 M-3 BBB+ AA- 2006-FM1 M-4 BB A+ 2006-FM1 M-5 BB- A 2006-FM1 M-6 B A- 2006-FM1 M-7 B- BBB 2006-FM1 M-8 CCC BB 2006-FM1 M-9 CCC B 2006-FM1 M-11 D CCC Ratings Affirmed Ace Securities Corp. Home Equity Loan Trust Asset-backed pass-through certificates Series Class Rating ------ ----- ------ 2004-RM2 M-1, M-2 AA+ 2004-RM2 M-3, M-4 AA 2004-RM2 M-5 A+ 2005-HE3 A-1A, A-1B AAA 2005-HE3 A-2B, A-2C AAA 2005-HE3 M-1 AA+ 2005-HE3 M-2 AA 2005-HE3 M-3 AA- 2005-HE3 M-4 A+ 2005-HE3 M-5 A 2005-HE3 M-6 BBB+ 2005-HE3 M-7 BB+ 2005-HE3 M-8 BB 2005-HE3 M-9 BB- 2005-HE3 B-1 B 2005-HE3 B-2 CCC 2006-FM1 A-1, A-2A, A-2B AAA 2006-FM1 A-2C, A-2D AAA 2006-FM1 M-1 AA+ 2006-FM1 M-2 AA 2006-FM1 M-10 CCC ADVENTURE PARKS: Has Until March 17 To File Chapter 11 Plan ----------------------------------------------------------- The United States Bankruptcy Court for the Middle District of Georgia further extended Adventure Parks Group LLC and its debtor- affiliates' exclusive period to file a Chapter 11 plan until March 17, 2008. The Court also extended the Debtors' exclusive period to solicit acceptances of that plan through and including March 15, 2008. In their request, the Debtors told the Court that they have a number of request and adversary proceedings addressing the validity, priority and extent of liens against their assets, and the classification of liens, equity interest and leases, which are currently pending before the Court, hence, the need for more time. In addition, the Debtors said they need to select a liquidating trustee under their proposed joint Chapter 11 plan. The Debtors assured the Court that amendments to the disclosure statement dated Oct. 10, 2007, as reported in the Troubled Company Reporter, will be filed on or before Jan. 7, 2008. Objections to the disclosure statement may be filed no later than Jan. 16, 2008. Based in Valdosta, Georgia, Adventure Parks Group LLC is the holding company of Wild Adventures and Cypress Gardens. Wild Adventures operates an amusement park in Valdosta, Georgia, while Cypress operates an amusement park in Winter Haven, Florida. The company, along with Wild Adventures and Cypress Gardens, filed for chapter 11 protection on Sept. 11, 2006 (Bankr. M.D. Ga. Case Nos. 06-70659 through 06-70661). George H. McCallum, Esq., James P. Smith, Esq., and Ward Stone, Jr., Esq., at Stone & Baxter, LLP, represent the Debtors. Mark J. Wolfson, Esq., at Foley & Lardner LLP and James C. Frenzel, Esq., at James C. Frenzel P.C. in Georgia represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts between $50 million and $100 million. AEGIS MORTGAGE: Fitch Retains Junk Rating on Class B1 Certs. ------------------------------------------------------------ Fitch has taken rating actions on these Aegis mortgage pass- through certificates: Series 2003-1 -- Class M1 downgraded to 'BBB-' from 'AA', placed on Rating Watch Negative; -- Class M2 downgraded to 'B-/DR1' from 'BB', removed from Rating Watch Negative; -- Class B1 remains at 'C', Distressed Recovery Rating is revised to 'DR5' from 'DR4'. Series 2004-2 -- Class A affirmed at 'AAA'; -- Class M1 affirmed at 'AA'; -- Class M2 affirmed at 'A'; -- Class M3 affirmed at 'A-'; -- Class B1 affirmed at 'BBB-'; -- Class B2 downgraded to 'BB-' from 'BB'; -- Class B3 downgraded to 'C/DR4' from 'BB-'. Series 2004-3 -- Class A affirmed at 'AAA'; -- Class M1 affirmed at 'AA'; -- Class M2 affirmed at 'A'; -- Class M3 downgraded to 'BBB' from 'A-'; -- Class B1 downgraded to 'BB' from 'BBB+'; -- Class B2 downgraded to 'B' from 'BB+'; -- Class B3 downgraded to 'B-/DR1' from 'BB-'. The affirmations reflect a stable relationship between credit enhancement and expected losses and affect approximately $289.12 million in outstanding certificates. The downgrades reflect deterioration in the relationship between CE and expected losses and affect approximately $51.62 million in outstanding certificates. In addition, approximately $15.4 million is placed on Rating Watch Negative. The pool factors range from approximately 7% to 22%, and the transactions are seasoned in a range of 40 months to 55 months. The amount of loans in the 60+ delinquency buckets range from approximately 20.28% to 33.69%, and cumulative losses range from 2.35% to 3.27%. AIG GLOBAL: Deal Termination Cues Moody's to Withdraw Ratings ------------------------------------------------------------- Moody's Investors Service withdrew its ratings on these classes of notes issued by AIG Global Investment Corp. CBO-3 Ltd.: 1)The $100 million of Class A-1 Fixed Rate Senior Notes due October 2011, currently rated Aaa 2)The $138 million of Class A-2 Floating Rate Senior Notes due October 2011, currently rated Aaa 3)The $20,000,000 Class B Fixed Rate Senior Subordinate Notes due October 2011, currently rated C According to Moody's, the ratings were withdrawn because the deal was terminated. ALBERT BATTISTE: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Albert F. Battiste P.O. Box 752 Monroeville, PA 15146 Bankruptcy Case No.: 07-28076 Chapter 11 Petition Date: December 26, 2007 Court: Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Donald R. Calaiaro, Esq. Calaiaro, Corbett & Brungo, P.C. Grant Building, Suite 1105 310 Grant Street Pittsburgh, PA 15219-2230 Tel: (412) 232-0930 Fax: (412) 232-3858 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its largest unsecured creditors. AMERIQUEST MORTGAGE: Fitch Downgrades Ratings on 12 Classes ----------------------------------------------------------- Fitch Ratings has taken rating actions on the Ameriquest, Argent and Park Place mortgage pass-through certificates. Affirmations total $6.54 billion and downgrades total $775.2 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Ameriquest Mortgage Securities 2005-R6 -- $216.1 million class A affirmed at 'AAA' (BL:63.33, LCR:5.16); -- $57 million class M-1 affirmed at 'AA+' (BL:48.40, LCR:3.94); -- $49.8 million class M-2 affirmed at 'AA' (BL:37.92, LCR:3.09); -- $13.8 million class M-3 affirmed at 'AA-' (BL:34.80, LCR:2.84); -- $18 million class M-4 affirmed at 'A+' (BL:27.77, LCR:2.26); -- $16.8 million class M-5 affirmed at 'A' (BL:21.41, LCR:1.74); -- $12.6 million class M-6 affirmed at 'A-' (BL:19.24, LCR:1.57); -- $10.2 million class M-7 affirmed at 'BBB+' (BL:17.46, LCR:1.42); -- $11.4 million class M-8 affirmed at 'BBB' (BL:15.40, LCR:1.26); -- $11.4 million class M-9 downgraded to 'BB' from 'BBB-' (BL:13.39, LCR:1.09); -- $13.2 million class M-10 downgraded to 'B' from 'BB+' (BL:11.32, LCR:0.92); -- $6.6 million class M-11 downgraded to 'B' from 'BB' (BL:10.86, LCR:0.89). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 19.65%; -- Realized Losses to date (% of Original Balance): 1.17%; -- Expected Remaining Losses (% of Current Balance): 12.27%; -- Cumulative Expected Losses (% of Original Balance): 5.76%. Ameriquest Mortgage Securities 2005-R7 -- $341.6 million class A affirmed at 'AAA' (BL:54.48, LCR:4.92); -- $48 million class M-1 affirmed at 'AA+' (BL:46.05, LCR:4.16); -- $43.5 million class M-2 affirmed at 'AA+' (BL:38.98, LCR:3.52); -- $30.7 million class M-3 affirmed at 'AA' (BL:30.96, LCR:2.80); -- $23.2 million class M-4 affirmed at 'AA-' (BL:25.74, LCR:2.33); -- $23.2 million class M-5 affirmed at 'A+' (BL:22.59, LCR:2.04); -- $16.5 million class M-6 affirmed at 'A' (BL:20.21, LCR:1.83); -- $13.5 million class M-7 affirmed at 'A-' (BL:18.54, LCR:1.68); -- $14.2 million class M-8 affirmed at 'BBB+' (BL:16.26, LCR:1.47); -- $13.5 million class M-9 downgraded to 'BB' from 'BBB' (BL:11.18, LCR:1.01); -- $11.2 million class M-10 downgraded to 'B' from 'BBB' (BL:9.96, LCR:0.90); -- $8.2 million class M-11 downgraded to 'B' from 'BBB-' (BL:9.65, LCR:0.87); -- $5.2 million class M-12 downgraded to 'B' from 'BB+' (BL:9.64, LCR:0.87). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 16.50%; -- Realized Losses to date (% of Original Balance): 0.70%; -- Expected Remaining Losses (% of Current Balance): 11.07%; -- Cumulative Expected Losses (% of Original Balance): 5.15%. Ameriquest Mortgage Securities 2005-R8 -- $345.7 million class A affirmed at 'AAA' (BL:53.84, LCR:5.58); -- $49.5 million class M-1 affirmed at 'AA+' (BL:44.84, LCR:4.65); -- $38.2 million class M-2 affirmed at 'AA+' (BL:38.83, LCR:4.02); -- $26.2 million class M-3 affirmed at 'AA' (BL:34.49, LCR:3.57); -- $24.7 million class M-4 affirmed at 'AA-' (BL:27.12, LCR:2.81); -- $19.8 million class M-5 affirmed at 'A+' (BL:23.52, LCR:2.44); -- $21.2 million class M-6 affirmed at 'A' (BL:20.71, LCR:2.15); -- $14.1 million class M-7 affirmed at 'A-' (BL:18.92, LCR:1.96); -- $12.7 million class M-8 affirmed at 'BBB+' (BL:15.50, LCR:1.61); -- $10.6 million class M-9 downgraded to 'BBB' from 'BBB+' (BL:12.11, LCR:1.25); -- $8.5 million class M-10 downgraded to 'BBB-' from 'BBB' (BL:10.81, LCR:1.12); -- $11.3 million class M-11 downgraded to 'BB' from 'BB+' (BL:9.75, LCR:1.01); -- $4.9 million class M-12 affirmed at 'BB' (BL:9.73, LCR:1.01). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 15.35%; -- Realized Losses to date (% of Original Balance): 0.49%; -- Expected Remaining Losses (% of Current Balance): 9.65%; -- Cumulative Expected Losses (% of Original Balance): 4.58%. Ameriquest Mortgage Securities 2005-R9 -- $488.9 million class A affirmed at 'AAA' (BL:41.26, LCR:5.38); -- $93.9 million class M-1 affirmed at 'AA+' (BL:25.58, LCR:3.34); -- $37 million class M-2 affirmed at 'AA' (BL:20.06, LCR:2.62); -- $12.3 million class M-3 affirmed at 'AA-' (BL:18.25, LCR:2.38); -- $11.6 million class M-4 affirmed at 'A+' (BL:16.54, LCR:2.16); -- $13.7 million class M-5 affirmed at 'A' (BL:14.51, LCR:1.89); -- $8.9 million class M-6 affirmed at 'A-' (BL:13.42, LCR:1.75); -- $9.5 million class M-7 affirmed at 'BBB+' (BL:12.06, LCR:1.57); -- $6.8 million class M-8 affirmed at 'BBB' (BL:11.22, LCR:1.46); -- $11.6 million class M-9 affirmed at 'BBB-' (BL:9.34, LCR:1.22); -- $11.6 million class M-10 downgraded to 'BB' from 'BB+' (BL:7.69, LCR:1.00); -- $7.5 million class M-11 downgraded to 'B' from 'BB' (BL:7.09, LCR:0.92). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 11.31%; -- Realized Losses to date (% of Original Balance): 0.44%; -- Expected Remaining Losses (% of Current Balance): 7.67%; -- Cumulative Expected Losses (% of Original Balance): 4.51%. Ameriquest Mortgage Securities 2005-R10 -- $648.3 million class A affirmed at 'AAA' (BL:43.99, LCR:5.83); -- $65.2 million class M-1 affirmed at 'AA+' (BL:37.20, LCR:4.93); -- $57.1 million class M-2 affirmed at 'AA+' (BL:31.75, LCR:4.20); -- $41.1 million class M-3 affirmed at 'AA' (BL:27.75, LCR:3.68); -- $29 million class M-4 affirmed at 'AA' (BL:24.9, LCR:3.3); -- $30 million class M-5 affirmed at 'A+' (BL:21.94, LCR:2.91); -- $26 million class M-6 affirmed at 'A' (BL:17.18, LCR:2.28); -- $26 million class M-7 affirmed at 'A-' (BL:14.47, LCR:1.92); -- $16 million class M-8 affirmed at 'BBB+' (BL:13.03, LCR:1.73); -- $14 million class M-9 affirmed at 'BBB' (BL:12.04, LCR:1.59); -- $20 million class M-10 affirmed at 'BBB-' (BL:11.03, LCR:1.46). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 12.35%; -- Realized Losses to date (% of Original Balance): 0.51%; -- Expected Remaining Losses (% of Current Balance): 7.55%; -- Cumulative Expected Losses (% of Original Balance): 4.36%. Ameriquest Mortgage Securities 2005-R11 -- $616.5 million class A affirmed at 'AAA' (BL:43.69, LCR:5.49); -- $59.4 million class M-1 affirmed at 'AA+' (BL:37.06, LCR:4.66); -- $53.9 million class M-2 affirmed at 'AA+' (BL:31.54, LCR:3.96); -- $36.6 million class M-3 affirmed at 'AA' (BL:27.73, LCR:3.48); -- $27.4 million class M-4 affirmed at 'AA-' (BL:24.84, LCR:3.12); -- $28.3 million class M-5 affirmed at 'A+' (BL:21.84, LCR:2.74); -- $22.8 million class M-6 affirmed at 'A' (BL:17.89, LCR:2.25); -- $22.8 million class M-7 affirmed at 'A-' (BL:15.38, LCR:1.93); -- $15.5 million class M-8 affirmed at 'BBB+' (BL:13.72, LCR:1.72); -- $14.6 million class M-9 affirmed at 'BBB' (BL:12.30, LCR:1.55); -- $28.3 million class M-10 affirmed at 'BBB-' (BL:10.52, LCR:1.32). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 12.09%; -- Realized Losses to date (% of Original Balance): 0.44%; -- Expected Remaining Losses (% of Current Balance): 7.96%; -- Cumulative Expected Losses (% of Original Balance): 4.63%. Argent Securities 2005-W3 -- $587.2 million class A affirmed at 'AAA' (BL:51.40, LCR:3.13); -- $72 million class M-1 affirmed at 'AA+' (BL:44.08, LCR:2.68); -- $68 million class M-2 affirmed at 'AA+' (BL:37.61, LCR:2.29); -- $45 million class M-3 affirmed at 'AA+' (BL:33.26, LCR:2.02); -- $33 million class M-4 downgraded to 'AA-' from 'AA' (BL:30.05, LCR:1.83); -- $33 million class M-5 downgraded to 'A+' from 'AA' (BL:26.83, LCR:1.63); -- $29 million class M-6 downgraded to 'A-' from 'A+' (BL:23.95, LCR:1.46); -- $32 million class M-7 downgraded to 'BBB-' from 'A' (BL:16.56, LCR:1.01); -- $23 million class M-8 downgraded to 'BB' from 'A-' (BL:18.34, LCR:1.12); -- $21 million class M-9 downgraded to 'BB' from 'BBB+' (BL:16.23, LCR:0.99); -- $14 million class M-10 downgraded to 'B' from 'BBB' (BL:13.46, LCR:0.82); -- $15 million class M-11 downgraded to 'B' from 'BBB-' (BL:12.53, LCR:0.76); -- $10 million class M-12 downgraded to 'C/DR5' from 'BBB-' (BL:12.17, LCR:0.74). Deal Summary -- Originators: Argent Mortgage Company; -- 60+ day Delinquency: 22.74%; -- Realized Losses to date (% of Original Balance): 1.12%; -- Expected Remaining Losses (% of Current Balance): 16.44%; -- Cumulative Expected Losses (% of Original Balance): 9.62%. Argent Securities 2005-W5 -- $767.4 million class A affirmed at 'AAA' (BL:45.73, LCR:2.50); -- $76 million class M-1 affirmed at 'AA+' (BL:39.94, LCR:2.18); -- $68 million class M-2 downgraded to 'AA-' from 'AA+' (BL:34.43, LCR:1.88); -- $46 million class M-3 downgraded to 'A+' from 'AA' (BL:30.64, LCR:1.67); -- $33 million class M-4 downgraded to 'A' from 'AA' (BL:27.90, LCR:1.52); -- $33 million class M-5 downgraded to 'BBB+' from 'AA-' (BL:25.17, LCR:1.38); -- $31 million class M-6 downgraded to 'BBB' from 'A' (BL:22.53, LCR:1.23); -- $31 million class M-7 downgraded to 'BB' from 'A-' (BL:19.75, LCR:1.08); -- $23 million class M-8 downgraded to 'BB' from 'BBB+' (BL:17.89, LCR:0.98); -- $23 million class M-9 downgraded to 'B' from 'BBB' (BL:16.54, LCR:0.90). Deal Summary -- Originators: Argent Mortgage Company; -- 60+ day Delinquency: 23.56%; -- Realized Losses to date (% of Original Balance): 1.08%; -- Expected Remaining Losses (% of Current Balance): 18.30%; -- Cumulative Expected Losses (% of Original Balance): 12.12%. Park Place Securities 2005-WHQ4 -- $590.9 million class A affirmed at 'AAA' (BL:52.70, LCR:3.31); -- $73.9 million class M-1 affirmed at 'AA+' (BL:44.81, LCR:2.82); -- $67.1 million class M-2 affirmed at 'AA+' (BL:38.37, LCR:2.41); -- $47.7 million class M-3 affirmed at 'AA' (BL:33.63, LCR:2.11); -- $34.1 million class M-4 downgraded to 'AA-' from 'AA' (BL:30.22, LCR:1.9); -- $34.1 million class M-5 affirmed at 'A+' (BL:26.81, LCR:1.68); -- $32.9 million class M-6 downgraded to 'A-' from 'A' (BL:23.47, LCR:1.47); -- $30.7 million class M-7 downgraded to 'BBB' from 'A' (BL:20.30, LCR:1.28); -- $17 million class M-8 downgraded to 'BBB-' from 'A-' (BL:18.60, LCR:1.17); -- $20.4 million class M-9 downgraded to 'BB' from 'BBB' (BL:15.14, LCR:0.95); -- $13.6 million class M-10 downgraded to 'B-/DR3' from 'BBB-' (BL:10.26, LCR:0.64); -- $9.1 million class M-11 downgraded to 'C/DR5' from 'BB+' (BL:9.82, LCR:0.62). Deal Summary -- Originators: Argent Mortgage Company; -- 60+ day Delinquency: 24.61%; -- Realized Losses to date (% of Original Balance): 1.37%; -- Expected Remaining Losses (% of Current Balance): 15.92%; -- Cumulative Expected Losses (% of Original Balance): 8.41%. 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. ARGENT SECURITIES: Fitch Junks Rating on $10MM Class M-12 Cert. --------------------------------------------------------------- Fitch Ratings has taken rating actions on the Ameriquest, Argent and Park Place mortgage pass-through certificates. Affirmations total $6.54 billion and downgrades total $775.2 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Ameriquest Mortgage Securities 2005-R6 -- $216.1 million class A affirmed at 'AAA' (BL:63.33, LCR:5.16); -- $57 million class M-1 affirmed at 'AA+' (BL:48.40, LCR:3.94); -- $49.8 million class M-2 affirmed at 'AA' (BL:37.92, LCR:3.09); -- $13.8 million class M-3 affirmed at 'AA-' (BL:34.80, LCR:2.84); -- $18 million class M-4 affirmed at 'A+' (BL:27.77, LCR:2.26); -- $16.8 million class M-5 affirmed at 'A' (BL:21.41, LCR:1.74); -- $12.6 million class M-6 affirmed at 'A-' (BL:19.24, LCR:1.57); -- $10.2 million class M-7 affirmed at 'BBB+' (BL:17.46, LCR:1.42); -- $11.4 million class M-8 affirmed at 'BBB' (BL:15.40, LCR:1.26); -- $11.4 million class M-9 downgraded to 'BB' from 'BBB-' (BL:13.39, LCR:1.09); -- $13.2 million class M-10 downgraded to 'B' from 'BB+' (BL:11.32, LCR:0.92); -- $6.6 million class M-11 downgraded to 'B' from 'BB' (BL:10.86, LCR:0.89). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 19.65%; -- Realized Losses to date (% of Original Balance): 1.17%; -- Expected Remaining Losses (% of Current Balance): 12.27%; -- Cumulative Expected Losses (% of Original Balance): 5.76%. Ameriquest Mortgage Securities 2005-R7 -- $341.6 million class A affirmed at 'AAA' (BL:54.48, LCR:4.92); -- $48 million class M-1 affirmed at 'AA+' (BL:46.05, LCR:4.16); -- $43.5 million class M-2 affirmed at 'AA+' (BL:38.98, LCR:3.52); -- $30.7 million class M-3 affirmed at 'AA' (BL:30.96, LCR:2.80); -- $23.2 million class M-4 affirmed at 'AA-' (BL:25.74, LCR:2.33); -- $23.2 million class M-5 affirmed at 'A+' (BL:22.59, LCR:2.04); -- $16.5 million class M-6 affirmed at 'A' (BL:20.21, LCR:1.83); -- $13.5 million class M-7 affirmed at 'A-' (BL:18.54, LCR:1.68); -- $14.2 million class M-8 affirmed at 'BBB+' (BL:16.26, LCR:1.47); -- $13.5 million class M-9 downgraded to 'BB' from 'BBB' (BL:11.18, LCR:1.01); -- $11.2 million class M-10 downgraded to 'B' from 'BBB' (BL:9.96, LCR:0.90); -- $8.2 million class M-11 downgraded to 'B' from 'BBB-' (BL:9.65, LCR:0.87); -- $5.2 million class M-12 downgraded to 'B' from 'BB+' (BL:9.64, LCR:0.87). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 16.50%; -- Realized Losses to date (% of Original Balance): 0.70%; -- Expected Remaining Losses (% of Current Balance): 11.07%; -- Cumulative Expected Losses (% of Original Balance): 5.15%. Ameriquest Mortgage Securities 2005-R8 -- $345.7 million class A affirmed at 'AAA' (BL:53.84, LCR:5.58); -- $49.5 million class M-1 affirmed at 'AA+' (BL:44.84, LCR:4.65); -- $38.2 million class M-2 affirmed at 'AA+' (BL:38.83, LCR:4.02); -- $26.2 million class M-3 affirmed at 'AA' (BL:34.49, LCR:3.57); -- $24.7 million class M-4 affirmed at 'AA-' (BL:27.12, LCR:2.81); -- $19.8 million class M-5 affirmed at 'A+' (BL:23.52, LCR:2.44); -- $21.2 million class M-6 affirmed at 'A' (BL:20.71, LCR:2.15); -- $14.1 million class M-7 affirmed at 'A-' (BL:18.92, LCR:1.96); -- $12.7 million class M-8 affirmed at 'BBB+' (BL:15.50, LCR:1.61); -- $10.6 million class M-9 downgraded to 'BBB' from 'BBB+' (BL:12.11, LCR:1.25); -- $8.5 million class M-10 downgraded to 'BBB-' from 'BBB' (BL:10.81, LCR:1.12); -- $11.3 million class M-11 downgraded to 'BB' from 'BB+' (BL:9.75, LCR:1.01); -- $4.9 million class M-12 affirmed at 'BB' (BL:9.73, LCR:1.01). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 15.35%; -- Realized Losses to date (% of Original Balance): 0.49%; -- Expected Remaining Losses (% of Current Balance): 9.65%; -- Cumulative Expected Losses (% of Original Balance): 4.58%. Ameriquest Mortgage Securities 2005-R9 -- $488.9 million class A affirmed at 'AAA' (BL:41.26, LCR:5.38); -- $93.9 million class M-1 affirmed at 'AA+' (BL:25.58, LCR:3.34); -- $37 million class M-2 affirmed at 'AA' (BL:20.06, LCR:2.62); -- $12.3 million class M-3 affirmed at 'AA-' (BL:18.25, LCR:2.38); -- $11.6 million class M-4 affirmed at 'A+' (BL:16.54, LCR:2.16); -- $13.7 million class M-5 affirmed at 'A' (BL:14.51, LCR:1.89); -- $8.9 million class M-6 affirmed at 'A-' (BL:13.42, LCR:1.75); -- $9.5 million class M-7 affirmed at 'BBB+' (BL:12.06, LCR:1.57); -- $6.8 million class M-8 affirmed at 'BBB' (BL:11.22, LCR:1.46); -- $11.6 million class M-9 affirmed at 'BBB-' (BL:9.34, LCR:1.22); -- $11.6 million class M-10 downgraded to 'BB' from 'BB+' (BL:7.69, LCR:1.00); -- $7.5 million class M-11 downgraded to 'B' from 'BB' (BL:7.09, LCR:0.92). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 11.31%; -- Realized Losses to date (% of Original Balance): 0.44%; -- Expected Remaining Losses (% of Current Balance): 7.67%; -- Cumulative Expected Losses (% of Original Balance): 4.51%. Ameriquest Mortgage Securities 2005-R10 -- $648.3 million class A affirmed at 'AAA' (BL:43.99, LCR:5.83); -- $65.2 million class M-1 affirmed at 'AA+' (BL:37.20, LCR:4.93); -- $57.1 million class M-2 affirmed at 'AA+' (BL:31.75, LCR:4.20); -- $41.1 million class M-3 affirmed at 'AA' (BL:27.75, LCR:3.68); -- $29 million class M-4 affirmed at 'AA' (BL:24.9, LCR:3.3); -- $30 million class M-5 affirmed at 'A+' (BL:21.94, LCR:2.91); -- $26 million class M-6 affirmed at 'A' (BL:17.18, LCR:2.28); -- $26 million class M-7 affirmed at 'A-' (BL:14.47, LCR:1.92); -- $16 million class M-8 affirmed at 'BBB+' (BL:13.03, LCR:1.73); -- $14 million class M-9 affirmed at 'BBB' (BL:12.04, LCR:1.59); -- $20 million class M-10 affirmed at 'BBB-' (BL:11.03, LCR:1.46). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 12.35%; -- Realized Losses to date (% of Original Balance): 0.51%; -- Expected Remaining Losses (% of Current Balance): 7.55%; -- Cumulative Expected Losses (% of Original Balance): 4.36%. Ameriquest Mortgage Securities 2005-R11 -- $616.5 million class A affirmed at 'AAA' (BL:43.69, LCR:5.49); -- $59.4 million class M-1 affirmed at 'AA+' (BL:37.06, LCR:4.66); -- $53.9 million class M-2 affirmed at 'AA+' (BL:31.54, LCR:3.96); -- $36.6 million class M-3 affirmed at 'AA' (BL:27.73, LCR:3.48); -- $27.4 million class M-4 affirmed at 'AA-' (BL:24.84, LCR:3.12); -- $28.3 million class M-5 affirmed at 'A+' (BL:21.84, LCR:2.74); -- $22.8 million class M-6 affirmed at 'A' (BL:17.89, LCR:2.25); -- $22.8 million class M-7 affirmed at 'A-' (BL:15.38, LCR:1.93); -- $15.5 million class M-8 affirmed at 'BBB+' (BL:13.72, LCR:1.72); -- $14.6 million class M-9 affirmed at 'BBB' (BL:12.30, LCR:1.55); -- $28.3 million class M-10 affirmed at 'BBB-' (BL:10.52, LCR:1.32). Deal Summary -- Originators: Ameriquest Mortgage Company; -- 60+ day Delinquency: 12.09%; -- Realized Losses to date (% of Original Balance): 0.44%; -- Expected Remaining Losses (% of Current Balance): 7.96%; -- Cumulative Expected Losses (% of Original Balance): 4.63%. Argent Securities 2005-W3 -- $587.2 million class A affirmed at 'AAA' (BL:51.40, LCR:3.13); -- $72 million class M-1 affirmed at 'AA+' (BL:44.08, LCR:2.68); -- $68 million class M-2 affirmed at 'AA+' (BL:37.61, LCR:2.29); -- $45 million class M-3 affirmed at 'AA+' (BL:33.26, LCR:2.02); -- $33 million class M-4 downgraded to 'AA-' from 'AA' (BL:30.05, LCR:1.83); -- $33 million class M-5 downgraded to 'A+' from 'AA' (BL:26.83, LCR:1.63); -- $29 million class M-6 downgraded to 'A-' from 'A+' (BL:23.95, LCR:1.46); -- $32 million class M-7 downgraded to 'BBB-' from 'A' (BL:16.56, LCR:1.01); -- $23 million class M-8 downgraded to 'BB' from 'A-' (BL:18.34, LCR:1.12); -- $21 million class M-9 downgraded to 'BB' from 'BBB+' (BL:16.23, LCR:0.99); -- $14 million class M-10 downgraded to 'B' from 'BBB' (BL:13.46, LCR:0.82); -- $15 million class M-11 downgraded to 'B' from 'BBB-' (BL:12.53, LCR:0.76); -- $10 million class M-12 downgraded to 'C/DR5' from 'BBB-' (BL:12.17, LCR:0.74). Deal Summary -- Originators: Argent Mortgage Company; -- 60+ day Delinquency: 22.74%; -- Realized Losses to date (% of Original Balance): 1.12%; -- Expected Remaining Losses (% of Current Balance): 16.44%; -- Cumulative Expected Losses (% of Original Balance): 9.62%. Argent Securities 2005-W5 -- $767.4 million class A affirmed at 'AAA' (BL:45.73, LCR:2.50); -- $76 million class M-1 affirmed at 'AA+' (BL:39.94, LCR:2.18); -- $68 million class M-2 downgraded to 'AA-' from 'AA+' (BL:34.43, LCR:1.88); -- $46 million class M-3 downgraded to 'A+' from 'AA' (BL:30.64, LCR:1.67); -- $33 million class M-4 downgraded to 'A' from 'AA' (BL:27.90, LCR:1.52); -- $33 million class M-5 downgraded to 'BBB+' from 'AA-' (BL:25.17, LCR:1.38); -- $31 million class M-6 downgraded to 'BBB' from 'A' (BL:22.53, LCR:1.23); -- $31 million class M-7 downgraded to 'BB' from 'A-' (BL:19.75, LCR:1.08); -- $23 million class M-8 downgraded to 'BB' from 'BBB+' (BL:17.89, LCR:0.98); -- $23 million class M-9 downgraded to 'B' from 'BBB' (BL:16.54, LCR:0.90). Deal Summary -- Originators: Argent Mortgage Company; -- 60+ day Delinquency: 23.56%; -- Realized Losses to date (% of Original Balance): 1.08%; -- Expected Remaining Losses (% of Current Balance): 18.30%; -- Cumulative Expected Losses (% of Original Balance): 12.12%. Park Place Securities 2005-WHQ4 -- $590.9 million class A affirmed at 'AAA' (BL:52.70, LCR:3.31); -- $73.9 million class M-1 affirmed at 'AA+' (BL:44.81, LCR:2.82); -- $67.1 million class M-2 affirmed at 'AA+' (BL:38.37, LCR:2.41); -- $47.7 million class M-3 affirmed at 'AA' (BL:33.63, LCR:2.11); -- $34.1 million class M-4 downgraded to 'AA-' from 'AA' (BL:30.22, LCR:1.9); -- $34.1 million class M-5 affirmed at 'A+' (BL:26.81, LCR:1.68); -- $32.9 million class M-6 downgraded to 'A-' from 'A' (BL:23.47, LCR:1.47); -- $30.7 million class M-7 downgraded to 'BBB' from 'A' (BL:20.30, LCR:1.28); -- $17 million class M-8 downgraded to 'BBB-' from 'A-' (BL:18.60, LCR:1.17); -- $20.4 million class M-9 downgraded to 'BB' from 'BBB' (BL:15.14, LCR:0.95); -- $13.6 million class M-10 downgraded to 'B-/DR3' from 'BBB-' (BL:10.26, LCR:0.64); -- $9.1 million class M-11 downgraded to 'C/DR5' from 'BB+' (BL:9.82, LCR:0.62). Deal Summary -- Originators: Argent Mortgage Company; -- 60+ day Delinquency: 24.61%; -- Realized Losses to date (% of Original Balance): 1.37%; -- Expected Remaining Losses (% of Current Balance): 15.92%; -- Cumulative Expected Losses (% of Original Balance): 8.41%. 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. ARMANI INVESTMENT: Section 341(a) Meeting Slated for January 10 --------------------------------------------------------------- The United States Trustee for Region 14 will convene a meeting of creditors owed money by Armani Investment Inc. at 10:30 a.m., on Jan. 10, 2008, at the U.S. Trustee Meeting Room, James A. Walsh Court, 38 S Scott Avenue, Street 140 in Tucson, Arizona. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Tucson, Arizona-based Armani Investment Inc. filed for chapter 11 bankruptcy on Dec. 3, 2007 (Bankr. D. Ariz. Case No. 07-02453). Eric Slocum Sparks, Esq., at Eric Slocum Sparks PC represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $100 million. ASSET BACKED: Fitch Places 'BB' Ratings Under Negative Watch ------------------------------------------------------------ Fitch Ratings has taken rating actions on two Asset Backed Securities Corporation transactions. Affirmations total $501.4 million and downgrades total $33.8 million. In addition, $33 million was placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: ABSC 2005-HE6 -- $167.1 million class A affirmed at 'AAA' (BL: 72.11, LCR: 5.04); -- $74.2 million class M1 affirmed at 'AA+' (BL: 57.24, LCR: 4.00); -- $48.7 million class M2 affirmed at 'AA' (BL: 47.48, LCR: 3.32); -- $29.2 million class M3 affirmed at 'AA-' (BL: 41.22, LCR: 2.88); -- $26.2 million class M4 affirmed at 'A+' (BL: 35.96, LCR: 2.51) -- $24.7 million class M5 affirmed at 'A' (BL: 30.96, LCR: 2.16); -- $22.5 million class M6 affirmed at 'A-' (BL: 26.31, LCR: 1.84); -- $20.2 million class M7 affirmed at 'BBB+' (BL: 21.99, LCR: 1.54); -- $15.7 million class M8 rated 'BBB' (BL: 18.68, LCR: 1.31), placed on Rating Watch Negative; -- $12.7 million class M9 rated 'BBB-' (BL: 16.01, LCR: 1.12), placed on Rating Watch Negative; -- $18.7 million class M10 downgraded to 'B' from 'BB+' (BL: 12.27, LCR: 0.86) -- $15 million class M11 downgraded to 'C/DR5' from 'BB'. Deal Summary -- Originators: Option One 100% -- 60+ day Delinquency: 25.93%, -- Realized Losses to date (% of Original Balance): 0.75%; -- Expected Remaining Losses (% of Current Balance): 14.31%; -- Cumulative Expected Losses (% of Original Balance): 5.52%. ABSC 2005-HE7 -- $24.2 million class A affirmed at 'AAA' (BL: 83.90, LCR: 5.97); -- $17 million class M1 affirmed at 'AA+' (BL: 66.86, LCR: 4.76); -- $13.3 million class M2 affirmed at 'AA' (BL: 53.23, LCR: 3.79); -- $14.5 million class M3 affirmed at 'A' (BL: 37.90, LCR: 2.70); -- $8.6 million class M4 affirmed at 'BBB+' (BL: 28.82, LCR: 2.05); -- $4.1 million class M5 affirmed at 'BBB' (BL: 24.44, LCR: 1.74); -- $3.2 million class M6 affirmed at 'BBB-' (BL: 21.01, LCR: 1.50); -- $2.7 million class M7 affirmed at 'BB+' (BL: 18.07, LCR: 1.29); -- $2.7 million class M8 rated 'BB' (BL: 15.45, LCR: 1.10), placed on Rating Watch Negative; -- $1.6 million class M9 rated 'BB' (BL: 14.29, LCR: 1.02), placed on Rating Watch Negative; Deal Summary -- Originators: Centex 100% -- 60+ day Delinquency: 23.60%; -- Realized Losses to date (% of Original Balance): 0.40%; -- Expected Remaining Losses (% of Current Balance): 14.05%; -- Cumulative Expected Losses (% of Original Balance): 5.37%. 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. AYERSOME CDO: Moody's Cuts Rating on $9.25 Mil. Notes to Ba2 ------------------------------------------------------------ Moody's Investors Service placed these notes issued by Ayersome CDO I, Ltd. on review for possible downgrade: Class Description: $71,950,000 Class A-2 Floating Rate Secured Notes due 2045 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: US $20,000,000 Class A-3 Floating Rate Secured Notes due 2045 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $26,250,000 Class B Floating Rate Secured Notes due 2045 -- Prior Rating: Aa2 -- Current Rating: Aa2, on review for possible downgrade Class Description: $7,500,000 Class C Deferrable Interest Floating Rate Secured Notes due 2045 -- Prior Rating: A2 -- Current Rating: A2, on review for possible downgrade In addition Moody's also downgraded these notes: Class Description: $9,250,000 Class D Deferrable Interest Floating Rate Secured Notes due 2045 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba2 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. BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to B ---------------------------------------------------------- Fitch Ratings has upgraded Bally Technologies' Issuer Default Rating and senior secured bank debt ratings as: -- IDR to 'B' from 'B-'; -- Secured bank credit facilities to 'BB/RR1' from 'B/RR3'. The secured credit facilities comprise a term loan with $292 million outstanding as of Sept. 30, 2007 and a $75 million revolver. The Rating Outlook was revised to Positive from Stable, which reflects the company's significant progress in terms of its operating performance and its financial restatements as well as expectations of continued improvements in cash flow generation. The rating actions are based on Bally's significantly improved product pipeline and solid acceptance of the Alpha operating system platform over the past couple of years, which is generating meaningful improvement in its financial performance. On Dec. 20, 2007, Bally announced its F1Q'08 (period end Sept 30, 2007) results and revised its expectations for FY08. Driven by its improved product platform, Bally generated 23% revenue growth to $189 million in F1Q'08 and expects 27% growth in FY08 to more than $865 million (up from previous expectations of $830 million). Reported Adjusted EBITDA more than doubled to $58.5 mil in F1Q'08 compared to $26.4 million in F1Q'07, so LTM Adjusted EBITDA through Sept. 30, 2007 is roughly $171 million. Bally's leverage ratio according to its credit facility as of Sept. 30, 2007 was 1.82x versus a maximum allowable of 3.50x. Bally's credit profile has improved dramatically with substantial operating momentum, roughly $37 million in debt maturities in FY08 and FY09, unrestricted cash balances of $51.6 mil as of Sept. 30, 2007 (up from $40.8 mil as of June 30, 2007), $48.7 million available on its credit revolver, and a somewhat flexible capex budget. Tempering the financial improvement is the fact that the company has been under investigation by the SEC since 2005. In its most recent audited 10K dated June 30, 2007, the company continues to note material weaknesses in internal controls over financial reporting, with revenue recognition and inventory valuation among the most significant items. Delinquent SEC filings had been weighing on Bally's credit rating and it appears that Bally has resolved many of its reporting issues with Friday's filing of the F1Q'08 10Q. The company has become up-to-date with its SEC filings, having filed three 10Ks and seven 10Qs since November 2006. Additional concerns include litigation risk and how Bally will fare when the industry enters a new technology-driven upcycle in the next 12 months-24 months with the onset of server-based gaming, which could benefit Bally as well as the other major players including IGT, WMS, and Aristocrat. While competition has increased since the peak of the last cycle, IGT is likely to remain the dominant player, in Fitch's view, because it has the most financial resources, the broadest product pipeline, and the largest sales/marketing team. Fitch believes Bally's improved financial position and operational turnaround should help it to compete in the next cycle, but maintenance of Bally's recent market share gains could become more challenging. An upgrade from current ratings may be influenced by how Bally performs as server- based gaming becomes commercialized in 2008-2009. The recovery ratings and notching reflect Fitch's recovery expectations under a distressed scenario. Bally's recovery ratings reflect Fitch's expectation that the enterprise value of the company, and hence recovery rates for its creditors, will be maximized in a restructuring scenario, rather than a liquidation given the company's limited tangible asset base. An 'RR1' recovery rating reflects Fitch's belief that 100% recovery, including the assumption of a fully drawn revolver, is likely under a default scenario. Given the continued strong operating momentum that has generated $171 million in LTM Adjusted EBITDA, Fitch has updated its default EBITDA assumption for its recovery ratings to $105 million, or a 38% discount. That is based on the outstanding term loan balance, a fully drawn revolver assumption, and the credit facility's 3.5 times leverage covenant. Fitch believes the credit facility is more than 100% covered with a modest market multiple assumption of 6x, which is below recent industry transactions since the current credit market environment is likely to pressure transaction multiples. Therefore, Fitch's credit facility rating is notched up three to 'BB' from Bally's IDR of 'B'. BARNHILL'S BUFFET: Has Until December 31 to File Schedules ---------------------------------------------------------- The Hon. George C. Paine II of the U.S. Bankruptcy Court for the Middle District of Tennessee gave Barnhill's Buffet Inc. until Dec. 31, 2007, to file its schedules of assets and liabilities. Madison, Tennessee-based Barnhill's Buffet Inc., aka Barnhill's Buffet of Tennessee Inc., -- http://www.barnhills.com/-- operates a chain of restaurants. Its parent company is Dynamic Acquisition Group LLC. It filed for chapter 11 bankruptcy on Dec. 3, 2007 (Bankr. M.D. Tenn. Case No. 07-08948). William Caldwell Hancock, Esq., at The Hancock Law Firm represents the Debtor in its restructuring efforts. Attorneys at MGLAW PLLC represent the Official Committee of Unsecured Creditors. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $50 million. BEAR STEARNS: Fitch Downgrades Ratings on $200.5MM Certificates --------------------------------------------------------------- Fitch Ratings has taken these rating actions on three Bear Stearns Asset-Backed Securities transactions. Affirmations total $812.8 million and downgrades total $200.5 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: BSABS 2005-HE7 -- $152.1 million class A, M-1 affirmed at 'AAA' (BL: 60.89, LCR: 3.78); -- $74.7 million class M-2 affirmed at 'AA' (BL: 37.19, LCR: 2.31); -- $39.7 million class M-3 affirmed at 'A' (BL: 24.62, LCR: 1.53); -- $12.9 million class M-4 downgraded to 'BBB' from 'A-' (BL: 20.55, LCR: 1.27); -- $11.4 million class M-5 downgraded to 'BB' from 'BBB+' (BL: 16.84, LCR: 1.04); -- $7.1 million class M-6 downgraded to 'B' from 'BBB' (BL: 14.61, LCR: 0.91); -- $8.6 million class M-7 downgraded to 'B' from 'BBB-' (BL: 12.57, LCR: 0.78). Deal Summary -- Originators: Various -- 60+ day Delinquency: 26.92%, -- Realized Losses to date (% of Original Balance): 1.20%; -- Expected Remaining Losses (% of Current Balance): 16.12%; -- Cumulative Expected Losses (% of Original Balance): 6.63%. BSABS 2005-HE8 -- $154.4 million class A, M-1 affirmed at 'AAA' (BL: 57.92, LCR: 3.27); -- $72.7 million class M-2 affirmed at 'AA' (BL: 33.88, LCR: 1.92); -- $34.8 million class M-3 downgraded to 'BBB' from 'A' (BL: 22.19, LCR: 1.25); -- $5.7 million class M-4 downgraded to 'BBB-' from 'A-' (BL: 20.23, LCR: 1.14); -- $10.3 million class M-5 downgraded to 'BB' from 'BBB+' (BL: 16.74, LCR: 0.95); -- $5.7 million class M-6 downgraded to 'B' from 'BBB' (BL: 14.93, LCR: 0.84); -- $7.2 million class M-7 downgraded to 'B' from 'BBB-' (BL: 13.20, LCR: 0.75). Deal Summary -- Originators: Various -- 60+ day Delinquency: 23.48%; -- Realized Losses to date (% of Original Balance): 1.67%; -- Expected Remaining Losses (% of Current Balance): 17.69%; -- Cumulative Expected Losses (% of Original Balance): 8.80%. BSABS 2005-HE9 -- $234.8 million class A, M-1 affirmed at 'AAA' (BL: 53.85, LCR: 2.9); -- $84.2 million class M-2 affirmed at 'AA' (BL: 34.06, LCR: 1.83); -- $8 million class M-3 downgraded to 'A+' from 'AA-' (BL: 32.14, LCR: 1.73); -- $44.4 million class M-4 downgraded to 'BBB-' from 'A' (BL: 21.62, LCR: 1.16); -- $12.6 million class M-5 downgraded to 'BB' from 'A-' (BL: 18.52, LCR: 1.0); -- $12.6 million class M-6 downgraded to 'B' from 'BBB+' (BL: 15.41, LCR: 0.83); -- $6.9 million class M-7 downgraded to 'B' from 'BBB' (BL: 13.87, LCR: 0.75); -- $11.5 million class M-8 downgraded to 'C/DR5' from 'BBB-'. Deal Summary -- Originators: 43.15% Resmae -- 60+ day Delinquency: 29.93% -- Realized Losses to date (% of Original Balance): 1.16% -- Expected Remaining Losses (% of Current Balance): 18.59% -- Cumulative Expected Losses (% of Original Balance): 8.17% 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. BEAR STEARNS: $854MM Loss Cues Fitch to Retain Negative Outlook --------------------------------------------------------------- Fitch Ratings' Outlook for The Bear Stearns Companies Inc. remains Negative following the announcement of its fiscal year earnings for 2007, which included a loss of $854 million for the latest quarter. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. Total long-term debt of $68.5 billion was outstanding as of Nov. 30, 2007. Unsecured short-term debt was $12.8billion. Fitch also revised Bear Stearns' Rating Outlook to Negative from Stable last month. Bear Stearns' full year's income was $233 million, a decline of 89% from FY 2006. Fitch's Negative Outlook anticipated a material departure in performance for Bear Stearns. The loss for the quarter and the sources of profit were consistent with Fitch's expectations. Importantly, these results did not exhibit material contagion into Bear's other businesses. Bear Stearns' solid franchises in global clearing, equity sales and trading and prime brokerage and their earnings contributions are key to maintenance of the current ratings. In addition, the expected increase in capital from the announced partnership agreement with CITIC securities and its more limited market and credit risk appetites relative to peers are also highly relevant. Near term profitability is expected to be pressured given Bear Stearns' franchise exposure to the total U.S. mortgage market and global securitization markets. Fitch believes financial performance in 2008 will remain challenging given Bear Stearns' scale of its fixed income business and more limited international scope. Future adverse rating actions will be dictated by several factors, including: continued interim earnings declines, severe negative valuation adjustments, an increased risk profile, diminished liquidity, rising leverage and/or tangible equity erosion. Litigation and adverse results from investigations of asset management may also weigh on earnings as well as the ratings. Long-term ratings would not be expected to be downgraded by more than one notch. Fitch believes restoration of sustained earnings growth may be hampered by limited opportunities in key business lines including securitization and CDO/CLO underwriting. The mortgage origination and securitization businesses will focus on the less profitable prime and agency backed businesses. Bear Stearns is focused on maintaining its equity sales and trading franchise and global expansion. Prospects for near-term growth in asset management revenues and assets under management have been dampened by the liquidation of two sponsored MBS hedge funds this past summer. Liquidity has been managed well and is ample, while the operating environment may limit Bear Stearns' financial flexibility. Bear Stearns continues to maintain cash and unencumbered securities well in excess of 110% of unsecured debt maturing in one year. Like its U.S. peers, leverage has increased steadily over the past three years. Term debt maturities have been extended, however, and are fairly well-laddered. Fitch expects capital management to focus on increased retention rather than share buybacks. Buybacks are expected to occur in tandem with earnings and capital generation, so that leverage is contained and the capital structure is unimpaired. BEATRIZ CINTRON: Case Summary & 15 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Beatriz Colon-Cintron 264 Old Mill Circle Kissimmee, FL 34746 Bankruptcy Case No.: 07-06749 Chapter 11 Petition Date: December 24, 2007 Court: Middle District of Florida (Orlando) Debtor's Counsel: Oscar Gonzalez, Jr., Esq. Law Office of Oscar Gonzalez Jr 1400 North Semoran Boulevard Suite J Orlando, FL 32807 Tel: (407) 275-2105 Fax: (407) 275-3608 Total Assets: $1,393,767 Total Debts: $1,527,774 Debtor's list of its 15 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service Taxes $56,806 P.O. box 105017 Atlanta, GA 30348-5017 Countrywide Mortgage $36,047 P.O. Box 10219 (secured Van Nuys, CA 91410 $785,000) U.S. Department o Education Student Loan $26,552 Direct Loan Servicing P.O. Box 5609 Greenville, TX 75403 Bank of America Credit Card $22,528 Capital One Bank Credit Card $13,562 HomeEq Mortgage $10,717 (secured $325,000) Chase Credit Card $8,732 Chase Disney Rewards Credit Card $8,589 University Accounting Service Student Loan $6,354 GE Money Bank Credit Card $5,232 American Express Credit Card $3,097 Fairfield Resorts, IN Mortgage $2,000 (secured $7,000) SuntrustBank $1,774 Capital One Bank Credit Card $1,327 Sheffield Financial, LLC Security Agreement $787 (secured $2,500) BILLING SERVICES: Closes Wireless Services Biz Sale to Syniverse ---------------------------------------------------------------- Billing Services Group Limited has completed the sale of its wireless services business to Syniverse Technologies. The combined company serves more than 500 customers in over 100 countries with the industry's broadest suite of voice and data roaming, financial clearinghouse, messaging, and signaling services. "This acquisition significantly expands Syniverse's global footprint and adds a world-class financial settlement platform to our industry-leading suite of services," said Tony Holcombe, President and Chief Executive Officer, Syniverse. "The combination of Syniverse and BSG Wireless also will lead to increased operating efficiencies, and we expect to realize $12 million of annual cost synergies within two years." The former BSG Wireless operations will become part of Syniverse's EMEA organization and will be led by Eugene Bergen Henegouwen, Executive Vice President, EMEA, Syniverse. Bergen Henegouwen said the acquisition will enable Syniverse to provide increasingly superior products and services over the long term. "The blend of Syniverse and BSG Wireless know-how will allow us to deliver mobile operators even higher levels of expertise and innovative solutions while addressing their needs for a trusted one-stop shop for both data clearing and financial clearing services," he said. The transaction was funded through the draw down of the company's amended and restated credit facility completed in August 2007. Included in the facility were a delayed draw term loan of $160 million in aggregate principal and a Euro-denominated delayed draw term loan facility of the equivalent of $130 million intended to finance this acquisition. About Syniverse Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR) -- http://www.syniverse.com/-- provides technology services for wireless telecommunications companies. Its integrated suite of services include technology interoperability services, which enable the invoicing and settlement of domestic and international wireless roaming telephone calls and wireless data events; SMS and MMS routing and translation services between carriers; and interactive video and mobile broadband solutions, prepaid applications, and roaming services. Celebrating its 20th anniversary in 2007, Syniverse has offices in major cities around the globe. Syniverse is ISO 9001:2000 certified and TL 9000 approved, adhering to the principles of customer focus and quality improvement practices. The company has offices in the Netherlands, Brazil and China. About BSG Headquartered in San Antonio, Texas, Billing Services Group Ltd. - - http://www.billingservicesgroup.com/-- through its subsidiaries, provides billing, settlement, payment, clearing and risk management solutions to communication service providers. The company is publicly traded on the AIM market of the London Stock Exchange. * * * Standard & Poor's Ratings Services affirmed, on July 2007, its 'B+' corporate credit rating on Billing Services Group Ltd. The rating outlook is stable. BLACKROCK INC: Cash Fund Rating Gets a Downgrade from Moody's ------------------------------------------------------------- BlackRock Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that it has received subpoenas from various U.S. federal and state governmental and regulatory authorities and various information requests from the SEC in connection with industry-wide investigations of U.S. mutual fund matters. The company also disclosed that it has been named as a defendant in various legal actions, including arbitrations, class actions and other litigation and regulatory proceedings. Specifically, BlackRock said the investment funds that it manages are subject to lawsuits, any of which could harm the investment returns of the applicable fund or result in the company being liable to the funds for any resulting damages. BlackRock said it does not currently anticipate that the aggregate liability, if any, arising out of such regulatory matters or lawsuits will have a material adverse effect on the company's financial position, although at the present time, management is not in a position to determine whether any such pending or threatened matters will have a material adverse effect on BlackRock's results of operations and cash flows in any future reporting period. MLIM Transaction On Sept. 29, 2006, BlackRock and Merrill Lynch & Co. Inc. closed a transaction pursuant to which Merrill Lynch contributed its investment management business, Merrill Lynch Investment Managers, to BlackRock in exchange for an aggregate of 65 million shares of newly issued BlackRock common and non-voting participating preferred stock. At Sept. 30, 2007, Merrill Lynch owned approximately 45.4% of the company's voting common stock and approximately 49.6% of the total capital stock on a fully diluted basis of the company and The PNC Financial Services Group Inc. owned approximately 33.7% of the capital stock. BlackRock notes that while Merrill Lynch has agreed to indemnify the company for certain of the pre-closing liabilities related to legal and regulatory proceedings acquired in the transaction, entities that BlackRock now owns may be named as defendants in any litigations and the company's reputation may be negatively impacted. Moody's Cuts Cash Fund Rating Diya Gullapalli of The Wall Street Journal relates that BlackRock Cash Strategies Fund, an institutional cash fund from BlackRock, has been downgraded to "junk" status by Moody's Investors Service after the fund suspended certain daily fund redemptions. The fund, known as an "enhanced" cash fund, has been unable to honor all the redemptions in cash, as many of the securities in the portfolio have become harder to trade, and more redemption requests have come in, WSJ says, citing a company letter to investors. According to WSJ, Moody's downgraded the fund from a top Aaa rating, to a Ba, and reduced the fund's market-risk rating. About BlackRock Inc. Headquartered in New York City, BlackRock Inc. (NYSE:BLK) -- http://www2.blackrock.com/-- and its subsidiaries provide diversified investment management services to institutional clients and individual investors through various investment products. Investment management services primarily consist of the active management of fixed income, cash management and equity client accounts, the management of a number of open-end and closed-end fund families and the management of alternative investment funds developed to serve various customer needs. Through BlackRock Solutions(R), the Company provides risk management, system outsourcing, investment accounting services, advisory and transition management services that combine capital markets expertise with proprietarily-developed systems and technology. The firm has approximately 5,100 employees in 19 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East. BLOCKBUSTER INC: Fitch Holds 'CCC' Rating on Subordinated Notes --------------------------------------------------------------- Fitch Ratings has affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. In addition, Fitch upgrades these ratings: -- $450 million bank credit facility to 'CCC+/RR3' from 'CCC/RR4'; -- $100 million term loan A to 'CCC+/RR3' from 'CCC/RR4'; -- $550 million term loan B to 'CCC+/RR3' from 'CCC/RR4'. The Rating Outlook is Stable. The company had approximately $991 million of debt outstanding as of Sept. 30, 2007. The affirmation of the IDR reflects the company's leading market position, strong brand recognition and increased financial flexibility following amendments made to the bank covenants in July 2007. In addition, the affirmation considers the weak financial performance which has pressured credit metrics as well as the highly competitive operating environment. Nonetheless, BBI should have adequate liquidity available to meet its near-term capital and debt service requirements. The upgrades of the bank credit facility, term loan A and term loan B reflect a revised recovery analysis described below. BBI is the leading player in the home video rental industry with $5.4 billion in revenues in the last twelve months ending Sept. 30, 2007. The company's strong brand recognition and broad geographical coverage have resulted in BBI capturing approximately 40% market share in the rental market. In addition, BBI amended its bank covenants in July 2007, which postpones its obligations to satisfy leverage and interest coverage ratios until Jan. 2009. This provides the company with greater financial flexibility as management begins to implement its recent announced turnaround plan of focusing on profitable growth through a three-prong strategy of 1) restoring the rental business, 2) transitioning from rental focus to retail focus and 3) transforming from DVD focus to digital. Nevertheless, BBI's operating performance continues to be weak driven by store closures and investments in the online business. As a result, operating LTM EBITDA margin decreased 260bps to 3.1%. Therefore, the company recently implemented cost-containment efforts related to corporate overhead, decreased store-level compensation and reduced advertising expenses. Furthermore, BBI modified prices on its Total Access, Unlimited Total Access and mail-order-only plans to help improve operating margins. Given the weak operating results, credit metrics have deteriorated with LTM adjusted debt/EBITDAR and EBITDAR coverage of interest and rents at 7.6x and 1.1x, respectively. However, BBI has adequate near-term liquidity, mainly from its cash balance of $129 million and availability of $174 million under its credit facility as of Sept. 30, 2007, to meet its capital and debt service requirements. Of ongoing concern is the intense competition in the industry. In its store-based business, BBI competes with other video-rental chains, discounters and specialty retailers. In its online business, the company competes with other online video rental providers as well as competing technologies such as video-on- demand, pay-per-view and digital video records. The Recovery Ratings and notching in the debt structure reflect Fitch's recovery expectations in a distressed scenario. The bank credit facility, term loan A and term loan B are secured by land, buildings, improvements, equipment, furniture, permits, licenses, subleases, and real estate tax refunds owned by BBI as well as collateralized by pledges of stock of all of the company's domestic subsidiaries and 65% of the stock of certain international subsidiaries. They have been upgraded to 'CCC+/RR3' from 'CCC/RR4', reflecting expected recovery of 51%-70% following the $145 million reduction to outstanding borrowings and a $50 million decrease in the bank credit facility commitment. The senior subordinated notes are rated 'CC/RR6', reflecting poor recovery prospects (0%-10%) in a distressed case. BOISE PAPER: Moody's Puts Ba2 Rating on Proposed First Lien Debt ---------------------------------------------------------------- Moody's Investors Service assigned Ba2 ratings to Boise Paper Holdings, L.L.C.'s proposed first lien debt and a B2 rating to the company's proposed second lien term loan. Proceeds from the new debt facilities will be used to fund Aldabra 2 Acquisition Corp.'s acquisition of the paper and packaging businesses of Boise Cascade, L.L.C. Upon close, anticipated in February 2008, Aldabra, a publicly traded company, will be renamed Boise Inc. In a related action, Moody's assigned Boise a Ba3 corporate family rating as well as a speculative grade liquidity rating of SGL-2. The rating outlook is positive. The rating action reflects the reasonable amount of leverage at transaction close and Moody's expectation of strong and stable operating performance over the intermediate term. Moody's believes that the company's market position as the third largest producer of uncoated free sheet paper in North America, favorable industry supply trends from recent consolidation and rationalization actions, and pricing improvements will allow the company to generate margins and free cash flow appropriate for the Ba3 corporate family rating. The ratings also consider the challenges of shifting to higher margin specialty products, input cost pressures, and declining demand in certain of Boise's products. The rating outlook is positive because Moody's believes the company will have the ability to reduce leverage from internal cash flow generation over the next 12 months. If Boise moderately reduces leverage over this period through a combination of improved paper and linerboard pricing and realization of higher margin specialty products, the ratings may be upgraded. The uncoated free sheet paper capacity shutdowns announced in 2007 and the reduction of imports into North America due to a weak US dollar have led to price improvements in 2007. Moody's believes these actions and trends will allow supply to remain in balance with demand over the intermediate term. Moody's positive outlook also reflects expectations that the transaction will be consummated without any of Aldabra's stockholders exercising their conversion rights and that the company will have approximately $950 million of outstanding indebtedness. If a significant number of shareholders decide to exercise their conversion rights, Moody's may change the outlook to stable. The SGL-2 speculative grade liquidity rating for Boise reflects good liquidity, given the expectation of strong cash flow generation, ample availability under its new $250 million revolver, and the expectation that compliance with financial covenants will not limit access to the credit facility. The first lien term loans are guaranteed by operating subsidiaries and secured by all assets of the company, which provide substantial collateral coverage to the proposed facilities. Thus, the ratings are notched up from the Ba3 corporate family rating to Ba2. The second lien term loan will be secured by a second priority security interest, resulting in a two-notch differential from the Ba3 corporate family rating to B2. Ratings Assigned -- Corporate Family Rating, Ba3 -- Probability of Default Rating, Ba3 -- First Lien Secured Revolver, Ba2 (LGD3, 39%) -- First Lien Secured Term Loan A, Ba2 (LGD3, 39%) -- First Lien Secured Term Loan B, Ba2 (LGD3, 39%) -- Second Lien Secured Term Loan, B2 (LGD5 83%) -- Speculative Grade Liquidity Rating, SGL-2 The outlook is positive. Boise Paper Holdings, L.L.C., headquartered in Boise, Idaho, is the third largest North American producer in uncoated free sheet paper and has a significant presence in the markets for packaging materials including linerboard, corrugated containers, and specialty and premium paper products. BRENDAN GRIFFIN: Case Summary & Six Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Brendan Griffin 61 Winthrop Drive Middlebury, CT 06762 Bankruptcy Case No.: 07-33014 Chapter 11 Petition Date: December 21, 2007 Court: District of Connecticut (New Haven) Judge: Lorraine Murphy Weil Debtor's Counsel: Peter L. Ressler, Esq. Groob Ressler & Mulqueen 123 York Street, Suite 1B New Haven, CT 06511-0001 Tel: (203) 777-5741 Fax: (203) 777-4206 Estimated Assets: $0 to $50,000 Estimated Debts: $1 Million to $10 Million Debtor's list of its 6 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ State of Connecticut Taxes $81,455 Department of Revenue Service C&E Division, Bankruptcy Section 25 Siguorney Street Hartford, CT 06106-5032 American Express Credit Card $64,400 P.O. Box 7871 Fort Lauderdale, FL 33329 P.O. Box 84058 $31,800 Columbus, GA 31908 MBNA America $50,000 P.O. Box 15137 Wilmington, DE 19886-5409 Citi Bank Credit Card $42,555 Advanta $40,000 Capital One Credit Card $8,800 CALPINE CORP: Claims Against Directors Unjustified, Rosetta Says ---------------------------------------------------------------- Rosetta Resources Inc., an independent oil-and-gas company, responded to Calpine Corp.'s plan of reorganization which was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on Dec. 19, 2007. Although Rosetta generally supported Calpine's plan of reorganization, Rosetta objected to the release of Calpine's claims against, among others, members of Calpine's current and previous boards of directors on the ground that the proposed releases could not be justified in light of the allegations which Rosetta believes are frivolous and unsubstantiated that Calpine has made regarding these persons' conduct and role in its lawsuit against Rosetta. While conceding that Calpine need only meet a very low legal threshold for the Bankruptcy Court to approve the releases, Rosetta was able to detail to the Court the inconsistency in Calpine's intent to release these persons, when Calpine has alleged in the lawsuit that these same persons were responsible for approving the transaction Calpine alleges to have been rushed, not subject to competitive bidding, and not diligently priced. In addition, Rosetta pointed out to the Court: * Either Calpine's board acted properly, with all relevant information, and with a reasonable basis for believing that the purchase price Calpine was receiving from Rosetta was fair and in Calpine's best interest, in which event there would not be a basis for the lawsuit against Rosetta, or the board failed to act properly, in which event the board members could be liable and should not be indemnified by Calpine and there would not be a basis for the releases; * Calpine was led by a sophisticated board of directors, which included Kenneth Derr, former CEO and Chairman of Chevron, who certainly knew what information to request in order to fully discharge the board's duties in approving and authorizing the sale of oil and gas businesses, such as the transaction by which Calpine spun off Rosetta through a Rule 144A transaction; thus, if Calpine truly believes its allegations that Rosetta was underpriced by $400 million in a rush transaction, its allegations reflect misconduct and mismanagement by Calpine's board and they should not be released; and * If Calpine truly believes it undersold its oil and gas business by $400 million, the sworn testimony by a Calpine board member serving on its audit committee, both now and at the time of the transaction, that Calpine was solvent at the time of the Rosetta transaction negates a crucial element Calpine must prove in its cause of action against Rosetta, and Calpine was therefore releasing the only parties against whom it could conceivably have a claim for disposing of corporate assets without receiving full value (a contention Rosetta continues to dispute). "We will continue to fully protect the interests of Rosetta and its shareholders by vigorously defending against what Rosetta truly believes are frivolous claims by Calpine arising out of a transaction that Calpine's board with the help of its professional advisers, structured, priced and otherwise thoroughly vetted and reviewed," Randy Limbacher, President and CEO of Rosetta stated. Mr. Limbacher emphasized that Calpine's rush to release its officers, directors and advisors involved in the Rosetta transaction reflect Calpine's true motive which is merely to renegotiate its deal with Rosetta and the public markets. Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors disclosed total assets of $18,467,000,000, total liabilities not subject to compromise of $11,207,000,000, total liabilities subject to compromise of $15,354,000,000 and stockholders' deficit of $8,102,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. The hearing to consider confirmation of that Plan began Dec. 17, 2007, and was adjourned to Dec. 19, 2007. (Calpine Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CAPITAL EXCAVATING: Case Summary & Two Largest Unsecured Creditors ------------------------------------------------------------------ Lead Debtor: Capital Excavating Inc. 931 E. Southern Avenue, Suite 210 Mesa, AZ 85204 Bankruptcy Case No.: 07-07022 Type of Business: The Debtor is an excavating contractor. Chapter 11 Petition Date: December 21, 2007 Court: District of Arizona (Phoenix) Judge: Eileen W. Hollowell Debtor's Counsel: James Evans Thompson, Esq. Law Offices of James E. Thompson 1850 E. Thudnerbird Road Phoenix, AZ 85022 Tel: (602) 952-2666 Fax: (602) 569-8201 Estimated Assets: $50,000 to $100,000 Estimated Debts: $1 million to $10 million Debtor's two Largest Unsecured Creditors: &