Two classes of notes issued by Pacific Coast CDO Ltd. have been downgraded by Fitch Ratings and removed from Rating Watch Negative.The class A notes were downgraded from AA to A, and the class B notes were downgraded from B/DR4 to CCC/DR4. Pacific Coast is a collateralized debt obligation that consists of 46% residential mortgage-backed securities, 20% commercial MBS, 19% asset-backed securities, 13% other CDOs, and 3% corporate bonds. The rating agency cited a continued decline in overcolllateralization, a drop in interest coverage, and the use of principal proceeds to pay interest as factors in the downgrades.
Processing Content
