Taberna Euro CDO Notes Downgraded

Five classes of notes from Taberna Europe CDO I PLC, a collateralized debt obligation backed partly by commercial mortgage-related securities and the debt of real estate investment trusts, have been downgraded by Fitch Ratings. The downgrades were as follows: class A2, from AAA to AA; class B, from AA to A-minus; class C, from A to BBB-minus; class D, from BBB to B; and class E, from BB to B-minus. Fitch also removed the notes from Rating Watch Negative and affirmed the triple-A rating on the class A1 notes. The rating agency noted that it had placed the notes on Rating Watch in February, citing "moderate credit deterioration" of the collateral and the effect on junior classes of the portfolio's shortened weighted average life. "Proposed remedial actions have not been executed," Fitch said in explaining the downgrades. The collateral consists of senior and subordinated debentures issued by subsidiaries of REITs and real estate operating companies, as well as commercial mortgage-backed securities and commercial mortgage B-notes.