T R O U B L E D C O M P A N Y R E P O R T E R Friday, April 18, 2008, Vol. 12, No. 92 Headlines AAMES MORTGAGE: Moody's Downgrades Ratings on 16 Tranches ABSC TRUSTS: Moody's Cuts 93 Tranches' Ratings From 12 RMBS Deals ACE SECURITIES: Moody's Slashes Ratings on Six Tranches on Losses AES CORP: Closes $930 Mil. Transfer of Philippine Assets AFFINION GROUP: Moody's Keeps 'B2' Ratings on Weak Fin'l Metrics ALASKA COMMUNICATIONS: Moody's Holds Ratings on New $125MM Issue ALOHA AIRLINES: May Employ Berger Singerman as Counsel ALOHA AIRLINES: Taps Fieldstone Aviation to Sell Contract Services ALOHA AIRLINES: Taps Imperial Capital as Financial Advisors AMERICAN HOME: Countrywide's Bid for Late Claims Filing Approved AMERICAN BIO: UHY LLP Expresses Going Concern Doubt AMERIQUEST MORTGAGE: Fitch Cuts Ratings on $1.1 Bil. Certificates AMERIQUEST MORTGAGE: Fitch Takes Rating Actions on Var. Classes AMR CORP: Selling Asset-Management Subsidiary for $480 Million ARGENT SECURITIES: Fitch Slashes Ratings on $2 Bil. Certificates ARGENT SECURITIES: Fitch Downgrades Ratings on 17 Cert. Classes AUSTIN HEIGHTS: Case Summary & Two Largest Unsecured Creditors AVAGO TECHNOLOGIES: Moody's 'B2' Rating Unaffected by CFO Stepdown AXESSTEL INC: Gumbiner Savett Expresses Going Concern Doubt BANCO INDUSTRIAL: Moody's Puts Ba1 Currency Rating on $130MM Notes BANC OF AMERICA: Fitch Holds 'B' Rating on $6.8MM Class O Certs. BARCLAYS CAPITAL: Securities Paydown Cues S&P to Withdraw Ratings BEACH LANE: Case Summary & Four Largest Unsecured Creditors BEAR STEARNS: Moody's Takes Various Rating Actions on 36 Classes BIOJECT MEDICAL: Moss Adams Expresses Going Concern Doubt BRAIN MATTERS: Case Summary & 40 Largest Unsecured Creditors BRIDGEWATER POINTE: Chapter 11 Filing Cues Cancels Auction BRIDGEWATER POINTE: Case Summary & 33 Largest Unsecured Creditors CALPINE CORP: Seeks to Disallow $13 Million California Fire Claim CARRINGTON HOME: Moody's Downgrades Ratings on 105 Tranches CATHOLIC CHURCH: Panel Balks at Fairbank's Use of Funds CATHOLIC CHURCH: Portland Releases 2,000 Confidential Records CATHOLIC CHURCH: Portland Plans to Restructure Parishes CATHOLIC CHURCH: Spokane Asks for Order Closing Chapter 11 Case CATHOLIC CHURCH: Spokane Settlement with Plan Trustee Approved CSFB HOME: 43 Classes of Certs. Get Moody's Rating Downgrades CHEROKEE INT'L: Taps Stephens to Help Explore Strategic Options CHINA DIGITAL: Kabani & Co Expresses Going Concern Doubt CITIGROUP MORTGAGE: Fitch Chips Ratings on $176.1MM Certificates CLEAR CHANNEL: Extends Consent Payment Deadline to April 25, 2008 CREDIT SUISSE: Fitch Holds Low-B Ratings on $21.7MM Certificates CRITICAL THERAPEUTICS: Auditor Raises Going Concern Doubt DALE JARRETT: Stark Winter Expresses Going Concern Doubt DELTA AIR: PBGC Insists Recovery on Pension Plan's Unfunded Debts DOV PHARMA: PricewaterhouseCoopers Expresses Going Concern Doubt EDUCATION RESOURCES: Gets Interim OK on Goodwin Procter as Counsel EDUCATION RESOURCES: Gets Initial OK to Hire Conflicts Counsel EDUCATION RESOURCES: Section 341(a) Meeting Slated for May 15 ELCOM INTERNATIONAL: June 30 Balance Sheet Upside-Down by $614,000 ENDURANCE BUSINESS: Moody's Holds Ratings; Gives Negative Outlook EQUIFIRST MORTGAGE: Moody's Cuts Ratings on 2005-1 Truust to 'Ba3' FEDDERS CORP: Wants Plan-Filing Period Stretched to May 31 FIDELITY SEDGWICK: Fitch Affirms and Withdraws 'B' ID Rating FIELDSTONE MORTGAGE: Panel Wants Court to Review Employment Denial FIELDSTONE MORTGAGE: 17 Tranches Acquire Moody's Rating Downgrades FIRST MAGNUS: WNS Says Greenberg Traurig's Fees are "Unreasonable" GENERAL MOTORS: Aligns Marketing Leadership with 4 Brand Channels GMAC FINANCIAL: Proposed Restructuring Won't Affect S&P's Ratings GNB LLC: Case Summary & 20 Largest Unsecured Creditors GPS INDUSTRIES: Defaults on $1,500,000 Silicon Valley Bank Loan HAMPSHIRE GROUP: Liquidates Assets to Fund Corporate Operations HOOP HOLDINGS: Gets Final OK to Use Wells Fargo's Cash Collateral HOOP HOLDINGS: Court Gives Final OK to Access $35MM DIP Facility HOOP HOLDINGS: Wants to Hire Richards Layton as Bankruptcy Counsel INDYMAC HOME: Moody's Slashes Ratings to 'C' on 2006-1 Certificate INPLAY TECH: Moss Adams Expresses Going Concern Doubt ISCO INTERNATIONAL: Grant Thornton Expresses Going Concern Doubt JP MORGAN: Fitch Puts 'B-/DR1' Rating on $12.1MM Class P Certs. KENT FUNDING: Moody's Junks Rating on $18.5 Mil. Notes From 'Baa2' KID CASTLE: Brock Schechter Expresses Going Concern Doubt KLEROS REAL: Moody's Junks Ratings on Five Classes of 2046 Notes LAZARD GROUP: Moody's Maintains Positive Outlook on 'Ba1' Rating LONG BEACH: Moody's Downgrades Ratings on Four Certificates MAXJET AIRWAYS: Delaware Court Approves Asset Sale to MAAG MEDICOR LTD: Panel Opposes $51MM Sale; Wants Proceeds Escrowed MERRILL LYNCH: Moody's Slices Ratings on 2005-NC1 Class to 'B2' MICRO COMPONENT: Olsen Thielen Expresses Going Concern Doubt MM CONDOMINIUMS: Case Summary & 11 Largest Unsecured Creditors MORGAN STANLEY: Moody's Downgrades Ratings on Eight Tranches MORGAN STANLEY: Moody's Cuts 322 Tranches' Ratings From 41 Deals MOVIDA COMMS: Wants Court Nod on Rejection of Executory Contracts MRS FIELDS: Net Losses Cue KPMG LLP's Going Concern Doubt MSX INT'L: S&P Lifts Rating to B- from CCC+ on $205MM Senior Notes NATIONAL DATACOM: Carlin Charron Expresses Going Concern Doubt NEW CENTURY COS: Will Miss Filing Deadline for Fiscal 2007 Results NOBLE INTERNATIONAL: Cures Filing Default on Form 10-K for 2007 NOVELOS THERAPEUTICS: Stowe & Degon Expresses Going Concern Doubt NTS MORTGAGE: Ernst & Young Expresses Going Concern Doubt OMNICARE INC: Projected Revenue Declines Cues Moody's Rating Cuts PACKAGING DYNAMICS: S&P Holds 'B+' Rating; Removes Negative Watch PARK PLACE: Fitch Downgrades Ratings on $2.5 Billion Certificates PILGRIM'S PRIDE: Liquidity Challenges Cues Moody's Rating Reviews PLASTECH ENGINEERED: Wants Action Removal Period Moved to Aug. 29 PLASTECH ENGINEERED: Wants Until April 30 to File Schedules PLASTECH ENGINEERED: Seeks to Block GM from Repossessing Tools PRC LLC: Court Extends Action Removal Period to July 21 PRC LLC: Wants Epiq's Services to Include Voting & Tabulation Work PROBE MANUFACTURING: Jaspers Hall Expresses Going Concern Doubt QUEBECOR WORLD: Wants to Assume Three Software Licensing Deals QUEBECOR WORLD: E&Y Issues Monitor's Report to Quebec Court QUEBECOR WORLD: Seeks Assumption of Yale Materials Contracts RAINES LENDERS: Crowe Chizek Expresses Going Concern Doubt REMOTE DYNAMICS: Chisholm Bierwolf Expresses Going Concern Doubt SAVE OUR SPRINGS: Court Denies Confirmation of Chapter 11 Plan SECURITIZED ASSET: Moody's Cuts Ratings on 11 Tranches on Losses SHAPES/ARCH HOLDINGS: Creditors Oppose Disclosure Statement SILVERLEAF FINANCE: Fitch Puts 'BB+' Prelim. Rating on G Notes SKILLED HEALTHCARE: Facility Increase Cues S&P to Hold 'B+' Rating SOUNDVIEW HOME: Pool Losses Cues Moody's Rating Cut on One Tranche SPECIALTY UNDERWRITING: Moody's Downgrades Ratings on 12 Tranches SPONGETECH DELIVERY: Earns $188,482 in Third Quarter ended Feb. 29 STEEL DYNAMICS: $125MM Note Increase Cues S&P to Hold 'BB+' Rating SUNCREST LLC: Wants Court to Approve Sale Bidding Procedures SUNNY ISLES: Case Summary & 16 Largest Unsecured Creditors SYNTHEMED INC: Eisner LLP Expresses Going Concern Doubt TALLSHIPS FUNDING: Moody's Junks Ratings on Four Classes of Notes THORNBURG MORTGAGE: Failure to Pay Prompts S&P's Default Rating TRANSBOTICS CORP: Feb. 29 Balance Sheet Upside-Down by $703,861 TRANS STATES: Grounds Jets on Maintenance Issues on Half of Fleet TRENTONWORKS LTD: Ernst & Young Named as Bankruptcy Trustee UTSTARCOM INC: Board Elects Bruce J. Ryan as Independent Director VERTIS INC: Moody's Junks Corporate Rating on Very Tight Liquidity VISION MEDIA: Case Summary & 20 Largest Unsecured Creditors WILTON SERVICES: Court Calls for Probe on Assets, Keeps Case Open WMABS TRUST: High Delinquencies Cues Moody's 69 Rating Downgrades * Fitch Says US Credit Cards ABS Will Still Generate Excess Spread * Credit Quality Worsened for Corporate Issuers, Moody's Reports * S&P Reports Price of Basic Commodities Has Increase in Years * S&P Says Cigarette Industry Faces Steep Fall in Shipment Volume * S&P Expects Oil and Gas Sector Ratings to Show Positive Momentum * S&P Puts Ratings on 331 Classes from 79 Cash Flow and Hybrid ABS * Cahill Gordon Snags Bankruptcy Partner Joel Levitin from Dechert ********* AAMES MORTGAGE: Moody's Downgrades Ratings on 16 Tranches --------------------------------------------------------- Moody's Investors Service downgraded 16 tranches issued by Aames Mortgage Investment Trust in 2004 and 2005. The transaction is backed by primarily first-lien, subprime fixed and adjustable rate mortgage loans. The actions are based on the analysis of the credit enhancement provided by subordination, overcollateralization and excess spread relative to expected losses. Stepdown, or the possibility thereof, is likely to cause erosion of credit enhancement levels. Complete rating actions are: Issuer: Aames Mortgage Investment Trust 2004-1 -- Cl. M3, downgraded from Aa3 to A2 -- Cl. M4, downgraded from A1 to Baa1 -- Cl. M5, downgraded from A2 to Baa2 -- Cl. M6, downgraded from A3 to Ba1 -- Cl. M7, downgraded from Baa1 to Ba3 -- Cl. M8, downgraded from Baa2 to B3 -- Cl. M9, downgraded from Baa3 to Caa1 Issuer: Aames Mortgage Investment Trust 2005-1 -- Cl. M3, downgraded from Aa3 to A2 -- Cl. M4, downgraded from A1 to Baa1 -- Cl. M5, downgraded from A2 to Baa3 -- Cl. M6, downgraded from A3 to Ba2 -- Cl. M7, downgraded from Baa1 to B2 -- Cl. M8, downgraded from Baa2 to Caa1 -- Cl. M9, downgraded from Baa3 to Caa3 Issuer: Aames Mortgage Investment Trust 2005-2 -- Cl. M9, downgraded from Baa3 to Ba2 -- Cl. B1, downgraded from Ba1 to Ba3 ABSC TRUSTS: Moody's Cuts 93 Tranches' Ratings From 12 RMBS Deals ----------------------------------------------------------------- Moody's Investors Service downgraded the ratings of 93 tranches from 12 subprime RMBS transactions issued by ABSC. 26 downgraded tranches remain on review for possible further downgrade. The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, subprime residential mortgage loans. The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions are a result of Moody's on-going surveillance process. Complete rating actions are: Issuer: Asset Backed Securities Corporation Home Equity Loan Trust 2005-HE6 -- Cl. M8, Downgraded to Ba1 from Baa2 -- Cl. M9, Downgraded to B2 from Baa3 -- Cl. M10, Downgraded to Caa2 from Ba2 -- Cl. M11, Downgraded to Caa3 from B2 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust 2005-HE7 -- Cl. M7, Downgraded to B3 from Ba1 -- Cl. M8, Downgraded to Caa2 from Ba2 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust 2006-HE2 -- Cl. M2, Downgraded to Baa3 from Aa2 -- Cl. M3, Downgraded to B1 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B2 from A2; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to B3 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. M6, Downgraded to Caa2 from Ba1 -- Cl. M7, Downgraded to Caa3 from B2 -- Cl. M8, Downgraded to Ca from B3 -- Cl. M9, Downgraded to C from Ca Issuer: Asset Backed Securities Corporation Home Equity Loan Trust 2006-HE3 -- Cl. M3, Downgraded to Baa1 from A1 -- Cl. M4, Downgraded to B1 from A3 -- Cl. M5, Downgraded to B2 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. M6, Downgraded to B3 from Ba1; Placed Under Review for further Possible Downgrade -- Cl. M7, Downgraded to Caa1 from Ba3 -- Cl. M8, Downgraded to Caa2 from B1 -- Cl. M9, Downgraded to Caa3 from B3 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust 2006-HE4 -- Cl. M1, Downgraded to A2 from Aa2 -- Cl. M2, Downgraded to B1 from Aa3 -- Cl. M3, Downgraded to B2 from A3; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B3 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to Caa2 from Ba1 -- Cl. M6, Downgraded to Caa3 from B1 -- Cl. M7, Downgraded to Ca from B3 -- Cl. M8, Downgraded to C from Ca Issuer: Asset Backed Securities Corporation Home Equity Loan Trust AEG 2006-HE1 -- Cl. M-6, Downgraded to Baa3 from A3 -- Cl. M-7, Downgraded to B2 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-8, Downgraded to Caa1 from Ba2 -- Cl. M-9, Downgraded to Caa2 from B1 -- Cl. M-10, Downgraded to Caa3 from B3 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust NC 2005-HE8 -- Cl. M7, Downgraded to Baa3 from Baa1 -- Cl. M8, Downgraded to B1 from Baa2 -- Cl. M9, Downgraded to Caa2 from Baa3 -- Cl. M10, Downgraded to Ca from B2 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust Series MO 2006-HE6 -- Cl. M1, Downgraded to A3 from Aa1 -- Cl. M2, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M3, Downgraded to B2 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B2 from A2; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M6, Downgraded to Caa1 from Ba1 -- Cl. M7, Downgraded to Caa2 from Ba1 -- Cl. M8, Downgraded to Caa3 from Ba3 -- Cl. M9, Downgraded to Ca from B3 -- Cl. M10, Downgraded to Ca from Caa1 -- Cl. M11, Downgraded to C from Ca Issuer: Asset Backed Securities Corporation Home Equity Loan Trust, Series AMQ 2007-HE2 -- Cl. A3, Downgraded to Aa1 from Aaa -- Cl. A4, Downgraded to Aa3 from Aaa -- Cl. A5, Downgraded to A2 from Aaa -- Cl. M1, Downgraded to Ba1 from Aaa -- Cl. M2, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M3, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B2 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to B3 from A2; Placed Under Review for further Possible Downgrade -- Cl. M6, Downgraded to Caa1 from A3 -- Cl. M7, Downgraded to Caa2 from Baa3 -- Cl. M8, Downgraded to Caa3 from Ba2 -- Cl. M9, Downgraded to Ca from B1 -- Cl. M10, Downgraded to Ca from Caa2 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust, Series OOMC 2006-HE5 -- Cl. M2, Downgraded to Ba1 from Aa2 -- Cl. M3, Downgraded to B1 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B2 from A2; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M6, Downgraded to Caa1 from Baa3 -- Cl. M7, Downgraded to Caa2 from B2 -- Cl. M8, Downgraded to Caa3 from B3 -- Cl. M9, Downgraded to Ca from B3 -- Cl. M10, Downgraded to C from Caa3 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust, Series RFC 2007-HE1 -- Cl. M1, Downgraded to A2 from Aa1 -- Cl. M2, Downgraded to Ba1 from Aa2 -- Cl. M3, Downgraded to B1 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B2 from A1; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M6, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M7, Downgraded to Caa1 from Ba2 -- Cl. M8, Downgraded to Caa2 from Ba3 -- Cl. M9, Downgraded to Caa3 from B3 -- Cl. M10, Downgraded to Ca from Caa3 Issuer: Asset Backed Securities Corporation, Series AMQ 2006-HE7 -- Cl. A4, Downgraded to Aa2 from Aaa -- Cl. A5, Downgraded to A1 from Aaa -- Cl. M1, Downgraded to Ba3 from Aa1 -- Cl. M2, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M3, Downgraded to B2 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M4, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M5, Downgraded to Caa1 from Ba1 -- Cl. M6, Downgraded to Caa2 from Ba2 -- Cl. M7, Downgraded to Caa3 from B3 -- Cl. M8, Downgraded to Caa3 from Caa1 -- Cl. M9, Downgraded to Ca from Caa1 -- Cl. M10, Downgraded to C from Ca ACE SECURITIES: Moody's Slashes Ratings on Six Tranches on Losses ----------------------------------------------------------------- Moody's Investors Service downgraded 6 tranches from two deals issued by ACE Securities Corp. Home Equity Loan Trust in 2004 and 2005. The actions are based on the analysis of the credit enhancement provided by subordination, overcollateralization and excess spread relative to expected losses. The transactions are backed by primarily first lien subprime mortgage loans from various originators. The certificates have been downgraded based upon recent and expected pool losses and the resulting erosion of credit support. Moreover, increasing delinquencies along with step-down, or the possibility thereof, is likely to cause further erosion of credit enhancement levels. Complete rating actions are: ACE Securities Corp. Home Equity Loan Trust, Series 2004-RM1 -- Cl. B-1, Downgraded to B1 from Ba2 ACE Securities Corp. Home Equity Loan Trust, Series 2005-RM1 -- Cl. M-6, Downgraded to Baa2 from A3 -- Cl. M-7, Downgraded to Baa3 from Baa1 -- Cl. M-8, Downgraded to Ba1 from Baa2 -- Cl. M-9, Downgraded to Ba3 from Baa3 -- Cl. B-1, Downgraded to B2 from Ba2 AES CORP: Closes $930 Mil. Transfer of Philippine Assets -------------------------------------------------------- The AES Corporation completed the $930 million purchase and transfer of assets of the 660 MW Masinloc coal-fired thermal power plant located in Barangay Bula, Zambales Province, Luzon, The Philippines. "This acquisition is a key component of our strategy to invest in areas where there is a significant need for new capacity and offers AES an excellent entry point into the growing Philippine economy through the lowest cost thermal plant in the system," Paul Hanrahan, AES president and chief executive officer, said. "This is a particularly attractive investment because the existing facility has the infrastructure in place to allow AES to add an additional 600 MW of generation capacity." "As AES has done through similar acquisitions in other parts of the world, we expect to improve the overall efficiency and output of the existing plant, providing more reliable energy to the Philippine market," Mr. Hanrahan continued. AES and its 8% minority partner International Finance Corporation paid 100% of the purchase price upfront to complete the Masinloc transaction in one step. Including transaction costs and completion of a planned upgrade program to improve environmental and operational performance, the total project cost is estimated at $1,057 million. The transaction funding included $635 million in secured non-recourse financing comprised of a $240 million, 18- year facility from IFC, a $200 million, 15-year facility from Asian Development Bank, and a $195 million, 10-year facility from a consortium of banks including ING Bank, Security Bank, Bank of Philippine Islands and Rizal Commercial Banking Corporation. In addition, over $30 million of unsecured working capital facility commitments have been obtained from three local banks. "The impressive local and international group of commercial and multilateral lenders reflects not only the strong fundamentals of the project but also demonstrates the strength of the project finance market in Asia," Mark Woodruff, executive vice president and president of AES's asia and middle east region, said. Approximately 60% of the electricity generated at the Masinloc plant will be sold to electric distribution companies, cooperatives and special economic zones via power supply contracts of various tenors in place at the plant turnover. The remaining capacity will be sold through the wholesale power pool or under new contracts. AES provided the winning bid for the Masinloc facility in a privatization auction conducted by the Power Sector Assets and Liabilities Management Corporation. Originally constructed in 1998, the plant utilizes coal from a variety of sources in the Pacific Rim. Through this acquisition, AES now operates the Philippines' first privatized thermal plant. AES has been operating in Asia since 1994. AES's businesses in the region include electric utilities and generation facilities in China, India, Jordan, Oman, Pakistan, Qatar and Sri Lanka. AES has more than 5,000 MW of generation capacity in the region. About AES Corporation Headquartered in Arlington, Virginia, AES Corporation -- http://www.aes.com/-- a global power company, operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * As reported in the Troubled Company Reporter on Nov. 21, 2007, the. (AES: B1 Corporate Family Rating) has completed its offer to purchase up to $1.24 billion of outstanding senior notes. While no ratings changed as a result, the LGD point estimate on its senior secured credit facilities were revised to LGD 1, 2%, from LGD 1, 3%, its second priority secured notes to LGD 3, 38% from LGD 3, 41% and its senior unsecured notes to LGD 4, 53% from LGD 4, 57%. AFFINION GROUP: Moody's Keeps 'B2' Ratings on Weak Fin'l Metrics ---------------------------------------------------------------- Moody's Investors Service affirmed the B2 Corporate Family Rating and B2 Probability of Default rating of Affinion Group Holdings, Inc., raised the rating on $355 million face amount of senior subordinated notes to B3 from Caa1, and lowered the speculative grade liquidity rating to SGL-2 from SGL-1. The rating outlook is stable. The B2 Corporate Family Rating reflects weak financial strength metrics for the rating category, significant revenue concentration with large affinity partners, and concern that lower than expected new member additions or greater than expected attrition of the member base may limit profitability growth, especially with the US economy weakening. The ratings are supported by the company's leading market position, long-term relationships with affinity partners and track record of increasing adjusted EBITDA despite relatively flat revenues and a declining member base. The raised rating on the $355 million face amount of senior subordinated notes reflects $100 million of secured term loan repayments during 2007. The repayments decreased the amount of debt to which the notes are contractually subordinated. The lowering of the speculative grade liquidity rating to SGL-2 reflects a decline in cash balances and an increase in revolver utilization during 2007. Cash balances declined primarily because of prepayments of the secured term loan facility. In addition, during the fourth quarter of 2007 the company used cash on hand and revolver borrowings to fund a $50 million acquisition of a credit card registration business. The company is well positioned in the SGL-2 rating category with positive free cash flow from operations and solid headroom under financial covenants in the secured credit facility. Moody's took these rating actions: Affinion Group Holdings, Inc. -- Affirmed $350 million senior unsecured term loan due 2012, Caa1 (to LGD 6-91% from LGD 6-92%) -- Affirmed Corporate Family Rating, B2 -- Affirmed Probability of Default Rating, B2 -- Lowered Speculative Grade Liquidity Rating to SGL-2 from SGL-1 Affinion Group, Inc. -- Affirmed $100 million senior secured revolver due 2011, Ba2 (LGD 2/16% from LGD 2/18%) -- Affirmed $655 million senior secured term loan due 2012, Ba2 (LGD 2/16% from LGD 2/18%) -- Affirmed $304 million senior unsecured notes due 2013, B2 (to LGD 4-53% from LGD 4-57%) -- Raised $355 million senior subordinated notes due 2015, to B3 (LGD 5-76%) from Caa1(LGD 5-78%) Headquartered in Norwalk, Connecticut, Affinion is a leading direct marketer of membership, insurance and package enhancement programs. Apollo Management V, L.P. owns 97% of Affinion's common stock. ALASKA COMMUNICATIONS: Moody's Holds Ratings on New $125MM Issue ---------------------------------------------------------------- Moody's Investors Service affirmed Alaska Communications Systems Holdings, Inc.'s B1 corporate family rating and maintained the stable outlook. The rating action also included an upgrade to the company's bank credit facility rating to Ba3 from B1 and the assignment of a SGL-3 speculative grade liquidity rating (indicating adequate liquidity). The action was prompted by the completion of ACSH's new $125 million senior subordinated convertible debenture issue, and the pending $70 million acquisition of Crest Communications Corporations Group, Inc. The B1 CFR accounts for ACHS' solid position in its regional market. In addition, the Alaskan market displays good fundamentals allowing the company to record solid operating metrics. Offsetting these strengths are ACSH's small aggregate scale and relatively aggressive financial policies that stem from ongoing investment in growth initiatives and a focus on shareholder returns. The Crest acquisition and concurrent financing transaction do not affect Moody's perspective of ACSH's CFR. In the short term, the financing transaction relieves liquidity stress that may have resulted were the company to have closed the acquisition and continued with its AKORN network build- out. Longer term, the acquisition has strategic merit that should translate into enhanced future operating results and cash flow. Consequently, despite an increased debt load, the liquidity and operational benefits allow the B1 CFR and stable outlook to be affirmed. While the new debt issue does not impact ACSH's CFR, the new debt provides additional loss absorption to existing senior secured bank debt and hence necessitates adjustments to the company's consolidated waterfall of liabilities. With the application of Moody's loss given default methodology, the bank credit facility rating is upgraded to Ba3 from B1. The related LGD assessment and percentage was also adjusted. With cash on hand, availability under a revolving credit facility, proceeds of the new debt issue, and cash from operations, the company should have sufficient cash flow to finance the pending Crest acquisition and the ongoing AKORN capital investment. The bank facility is committed to 2011, and there are no debt maturities in the intervening period. Financial covenants are not expected to limit access over the forward four quarter SGL rating horizon. The combination of these factors causes ACSH's liquidity profile to be assessed as adequate for its needs and a speculative grade liquidity rating of SGL-3 is assigned. Upgrades: Issuer: Alaska Communications Systems Holdings, Inc. -- Senior Secured Bank Credit Facility, Upgraded to Ba3 (LGD3, 41) from B1 (LGD3, 49) Assignments: Issuer: Alaska Communications Systems Holdings, Inc. -- Speculative Grade Liquidity Rating, Assigned SGL-3 Alaska Communications Systems Holdings, Inc. is an integrated telecommunications provider based in Anchorage, Alaska. ALOHA AIRLINES: May Employ Berger Singerman as Counsel ------------------------------------------------------ The United States Bankruptcy Court for the District of Hawaii gave Aloha Airlines Inc. and its debtor-affiliates permission to employ Berger Singerman, P.A. as their counsel. Berger Singerman will advise the Debtors on their responsibilities to the creditors and other interested parties as well as represent the Debtors in negotiations with their creditors and in the preparation of a plan. Paul Steven Singerman, Esq., a shareholder at Berger Singerman, assured the Court that his firm does not hold or represent any interest adverse to the Debtor and their estates, and that the firm is a "disinterested" person as that term is defined in Section 101(14) of the bankruptcy code. Berger Singerman attested that in the one year period preceding the Debtors' bankruptcy filing, the firm received a total of $441,079.77 from the Debtors, not all of which were made in connection with the Debtors' bankruptcy cases. On March 20, 2008, the firm received a $100,000 wire transfer directly from GMAC Commercial Finance LLC on account of the firm's December 2007 invoice to the Debtors. On March 19, 2008, Berger Singerman received a $195,000 wire transfer from the Debtors. Of such amount, $15,000 was allocated to the payment of accrued and unpaid pre-petition fees and costs, with $160,000 to be utilized as a fee retainer; and $20,000 to be utilized as a cost retainer for the Debtors' bankruptcy cases. Berger Singerman's professionals who will have primary responsibility for providing services to the Debtors and their billing rates are: Paul Steven Singerman, Esq. Shareholder $510 per hour Jordi Guso, Esq. Shareholder $475 per hour Brian G. Rich, Esq. Shareholder $410 per hour The current hourly rates for the legal assistants and paralegals at Berger Singerman range from $75 to $170. About Aloha Airlines Based in Honolulu, Hawaii, Aloha Airgroup Inc., Aloha Airlines Inc. -- http://www.alohaairlines.com/-- and its affiliates are carriers that fly passengers and freight to Hawaii's five major airports, as well as to half a dozen destinations in the western U.S. They operate a fleet of about 20 aircraft, all Boeing 737s, including three configured as freighters. This is the airline's second bankruptcy filing. Aloha filed for Chapter 11 protection on Dec. 30, 2004 (Bankr. D. Hawaii Case No. 04-03063), and emerged from Chapter 11 bankruptcy protection in February 2006. The company and its affiliates filed again for Chapter 11 protection on March 18, 2008 (Bankr. D. Hawaii Lead Case No. 08- 00337). No creditors' committee, trustee, or examiner has been appointed in these cases. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $100 million to $500 million. ALOHA AIRLINES: Taps Fieldstone Aviation to Sell Contract Services ------------------------------------------------------------------ Aloha Airlines Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Hawaii for permission to employ Fieldstone Aviation LLC as their financial advisors, nunc pro tunc to the petition date. As provided in its engagement agreement with the Debtors, Fieldstone Aviation will: a) assist the Debtors in locating suitable buyers for the Debtors' contract services and cargo airline divisions, and will work to develop favorable proposals for the acquisitions. b) assist the Debtors in negotiations of the proposals contemplated in the engagement agreement with current or proposed acquirors. Fieldstone will approach an agreed list of acquirors, or any affiliates, ventures or principals of such companies, including those entities whose identities will be filed under seal in connection with the Debtors' application to retain Imperial Capital LLC. c) assist the Debtors in the negotiation and documentation of definitive agreements for the transactions contemplated by the engagement agreement; and d) perform other services as may be requested in writing from time to time by the Debtors or its counsel and agreed to by Fieldstone. Fieldstone will coordinate any services performed, or to be performed, with Imperial Capital LLC and the Debtors' counsel, as appropriate, to minimize duplication of effort. The Debtors are also seeking to employ Imperial to assist them in developing, evaluating, structuring and negotiating potential buyout, merger or acquisition of the Debtors' operations. The Debtors' request to employ Imperial is also reported in today's Troubled Company Reporter. Ellen P. Phillips, a managing director of Fieldstone, tells the Court that the firm does not hold or represent any interest adverse to the Debtors or their estates, and that the firm is a "disinterested person" as that term is defined in Section 101(14) of the bankruptcy code. Prior to the petition date, Fieldstone received a $44,000 retainer fee in connection with the services to be provided by Fieldstone under the engagement agreement. As compensation for its services, Fieldstone will receive success fees in accordance with a success fee formula computed in accordance with the terms of the engagement agreement. Fieldstone has unpaid invoices for $90,309.25, consisting of hourly fees totaling $86,401.00 and reimbursable expenses totaling $3,908.25, incurred during its prior engagement with the Debtors. As of the petition date, the Debtors have no unused credit balance with Fieldstone. The Debtors agree to indemnify Fieldstone and certain related parties in connection with the investigation, preparation of, or defense of any action or claim in which Fieldstone or any indemnified party is a party, caused by or arising out of any transaction contemplated by the engagement agreement or the performance by Fieldstone or indemnified party of any services contemplated under said agreement. The Debtors will not, however, be liable to the extent that any claims, liabilities, losses, damages, costs or expenses are judicially determined to have resulted from the negligence or willful misconduct of Fieldstone or indemnified party. About Aloha Airlines Based in Honolulu, Hawaii, Aloha Airgroup Inc., Aloha Airlines Inc. -- http://www.alohaairlines.com/-- and its affiliates are carriers that fly passengers and freight to Hawaii's five major airports, as well as to half a dozen destinations in the western U.S. They operate a fleet of about 20 aircraft, all Boeing 737s, including three configured as freighters. This is the airline's second bankruptcy filing. Aloha filed for Chapter 11 protection on Dec. 30, 2004 (Bankr. D. Hawaii Case No. 04-03063), and emerged from Chapter 11 bankruptcy protection in February 2006. The company and its affiliates filed again for Chapter 11 protection on March 18, 2008 (Bankr. D. Hawaii Lead Case No. 08- 00337). Brian G. Rich, Esq., Jordi Guso, Esq., and Paul Steven Singerman, Esq., at Berger Singerman P.A., and David C. Farmer, Esq., and David C. Farmer, Esq., represent the Debtors in their restructuring efforts. No creditors' committee, trustee, or examiner has been appointed in these cases. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $100 million to $500 million. ALOHA AIRLINES: Taps Imperial Capital as Financial Advisors ----------------------------------------------------------- Aloha Airlines Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Hawaii for permission to employ Imperial Capital LLC as their financial advisors, nunc pro tunc to the petition date. As the Debtors' financial advisors, Imperial Capital will provide these services: a) the analysis of the Debtors' business, operations, properties, financial condition, competition, forecast, prospects and management; b) advising the Debtors on a proposed purchase price and form of consideration for the Transaction; c) assisting the Debtors in developing, evaluating, structuring and negotiating the terms and conditions of a potential Transaction; d) assisting the Debtors in preparing for potential buyers to conduct due diligence investigations; e) assisting the Debtors in developing, evaluating, structuring and negotiating the terms and conditions of a potential Transaction; f) the private placement of any financing required for general corporate purposes or to complete an M&A Transaction (the "Financing") on a best efforts basis on terms satisfactory to the company and in compliance with Section 4(2) of the Securities Act of 1933, as amended, and all other applicable federal and state securities laws; and g) other services as may be requested in writing from time to time by the Debtors or its counsel and agreed to by Imperial. The services to be provided by Imperial will not be duplicative of those provided by any other professional retained by the Debtors. Furthermore, Imperial will coordinate any services performed with the Debtors' counsel, as appropriate, to minimize duplication of effort. The Debtors have also asked the Court's permission to employ Fieldstone Aviation LLC, primarily to assist them in locating suitable buyers for their contract services and cargo airline divisions. The Debtors' request to employ Fieldstone is also reported in today's Troubled Company Reporter. Marc A. Bilbao, a managing director of Imperial, tells the Court that the firm does not hold or represent any interest adverse to the Debtors or their estates, and that the firm is a "disinterested person" as that term is defined in Section 101(14) of the bankruptcy code. Prior to the bankruptcy filing, Imperial received a $100,000 retainer fee, which is fully earned and payable upon execution of the engagement letter and the Court's approval of Imperial's retention as well as a $25,000 deposit to be applied against expenses incurred by Imperial in connection with the services provided by Imperial under the engagement letter. In accordance with the terms of the engagement letter, Imperial shall be paid a Transaction Fee in an amount ranging between 2.0% and 4.0% of the total Transaction Consideration received by the Debtors or their debt or equity security holders pursuant to the Transaction. In addition, to the extent that the Debtors receive Transaction Consideration from certain parties, whose identities are confidential and will be subject of a motion to seal, the Transaction Fee payable to Imperial shall be reduced by an amount ranging from 0.5% and 1.0% of the Transaction Consideration received from those certain parties. The Transaction Fee shall be payable upon consummation of the Transaction. "Transaction Consideration" means the aggregate of all consideration received by the Debtors or their debt or equity security holders, the amount of any debt assumed or repaid (including aircraft lease obligations capitalized at seven times the annual rental expense), any preferred stock redeemed, and consideration received with respect to the exercise or termination of options, warrants or other rights of conversion. A Transaction shall be deemed to have been consummated upon the earliest of any of the following events to occur: a) the acquisition of the outstanding common stock of the Debtors by a buyer; b) a merger or consolidation of the Debtors with or into a buyer; c) the acquisition by a buyer or buyers of substantially all of the Debtors' assets; or d) in the case of any other substantially similar Transaction, the consummation of such Transaction. A "Financing Fee" shall be paid to Imperial out of the proceeds of the Financing, equal to 2.5% of the face amount of any debt securities sold or arranged as part of the Financing, provided, however, that no Financing Fee shall be payable on any Debtor-In- Possession financing provided by GMAC Commercial Finance. The Debtors shall not pay to Imperial both a Transaction Fee and a separate Financing Fee as a result of the same Transaction. The Debtors agree to indemnify Imperial and certain related parties. About Aloha Airlines Based in Honolulu, Hawaii, Aloha Airgroup Inc., Aloha Airlines Inc. -- http://www.alohaairlines.com/-- and its affiliates are carriers that fly passengers and freight to Hawaii's five major airports, as well as to half a dozen destinations in the western U.S. They operate a fleet of about 20 aircraft, all Boeing 737s, including three configured as freighters. This is the airline's second bankruptcy filing. Aloha filed for Chapter 11 protection on Dec. 30, 2004 (Bankr. D. Hawaii Case No. 04-03063), and emerged from Chapter 11 bankruptcy protection in February 2006. The company and its affiliates filed again for Chapter 11 protection on March 18, 2008 (Bankr. D. Hawaii Lead Case No. 08- 00337). Brian G. Rich, Esq., Jordi Guso, Esq., and Paul Steven Singerman, Esq., at Berger Singerman P.A., and David C. Farmer, Esq., and David C. Farmer, Esq., represent the Debtors in their restructuring efforts. No creditors' committee, trustee, or examiner has been appointed in these cases. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $100 million to $500 million. AMERICAN HOME: Countrywide's Bid for Late Claims Filing Approved ---------------------------------------------------------------- American Home Mortgage Investment Corp., its debtor-affiliates, Countrywide Home Loans, Inc., Countrywide Bank, F.S.B., ReconTrust Bank, N.A., and Landsafe agree in a Court-approved stipulation to resolve Countrywide's request to allow late filing of its proofs of claim. The Parties agree that Countrywide's claims will be deemed timely-filed, and that the Debtors reserve their rights to object to the Claims on any basis other than timeliness. As reported by the Troubled Company Reporter on April 2, 2008, Countrywide, ReconTrust and Landsafe ask the U.S. Bankruptcy Court for the District of Delaware to allow the late filing of their proofs of claim one business day beyond the January 11, 2008 Bar Date in the bankruptcy case of American Home Mortgage Investment Corp. and its debtor-affiliates. Countrywide Capital in Lake Havasu city, Arizona, is listed at one of the Debtor's 39 largest unsecured creditors. It holds unspecified unliquidated loan repurchase. About American Home Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The U.S. Bankruptcy Court for the District of Delaware extends the exclusive periods for American Home Mortgage Investors Corp. and its debtor-affiliates to file a plan of reorganization through June 2, 2008; and solicit and obtain acceptances for that plan through July 31, 2008. (American Home Bankruptcy News, Issue No. 32; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN BIO: UHY LLP Expresses Going Concern Doubt --------------------------------------------------- UHY LLP raised substantial doubt about the ability of American Bio Medica Corporation to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditing firm reported that in 2007, the company suffered a significant net loss, generated negative cash flows from operations, and at Dec. 31, 2007 is not in compliance with certain financial covenants required under its line of credit obligation. The company posted a net loss of $990,000 on total revenues of $13,872,000 for the year ended Dec. 31, 2007, as compared with a Income of $196,000 on total revenues of $13,838,000 in the prior year. At Dec. 31, 2007, the company's balance sheet showed $9,150,000 in total assets, $4,054,000 in total liabilities and $5,096,000 in stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2a38 About American Bio American Bio Medica Corporation (NasdaqCM: ABMC) -- http://www.americanbiomedica.com-- develops, manufactures, and sells immunoassay diagnostic test kits for drugs of abuse in the United States, North America, Europe, Asia/Pacific Rim, and South America. Its products include Rapid Drug Screen, a point of collection testing kit that detects the presence or absence of 2 to 10 drugs of abuse in a single urine specimen; Rapid One that consist of single drug tests, which screens for the presence or absence of a single drug of abuse in a urine specimen; Rapid TEC, which contains 1 or 2 drug testing strips that detect more than one class of drug; OralStat for the detection of drugs of abuse in oral fluids; Rapid Reader, a portable device that is used to interpret and record the results of drug screens; RDS InCup, a point of collection test for drugs of abuse that incorporates collection and testing of the sample in a single device; and Rapid TOX, a drug screen in a horizontal cassette platform, which detects 2 to 10 drugs of abuse in a single urine specimen. The company was founded in 1986. It was formerly known as American Micro Media, Inc. and changed its name to American Bio Medica Corporation in 1992. American Bio Medica Corporation is headquartered in Kinderhook, New York. AMERIQUEST MORTGAGE: Fitch Cuts Ratings on $1.1 Bil. Certificates ----------------------------------------------------------------- Fitch Ratings has taken rating actions on 11 Ameriquest Mortgage Securities Inc. mortgage pass-through certificate transactions. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed. Affirmations total $5.3 billion and downgrades total $1.1 billion. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2005-R1 -- $29.4 million class A-1A affirmed at 'AAA' (BL: 84.80, LCR: 4.49); -- $7.4 million class A-1B affirmed at 'AAA' (BL: 80.43, LCR: 4.26); -- $32.3 million class A-2A affirmed at 'AAA' (BL: 84.72, LCR: 4.49); -- $8.1 million class A-2B affirmed at 'AAA' (BL: 80.44, LCR: 4.26); -- $3.2 million class A-3B affirmed at 'AAA' (BL: 99.25, LCR: 5.26); -- $35.6 million class A-3C affirmed at 'AAA' (BL: 80.60, LCR: 4.27); -- $4.3 million class A-3D affirmed at 'AAA' (BL: 80.61, LCR: 4.27); -- $80.2 million class M-1 affirmed at 'AA' (BL: 56.18, LCR: 2.98); -- $22.5 million class M-2 affirmed at 'AA' (BL: 51.59, LCR: 2.73); -- $34.5 million class M-3 affirmed at 'AA-' (BL: 42.97, LCR: 2.28); -- $24.0 million class M-4 downgraded to 'A' from 'A+' (BL: 36.76, LCR: 1.95); -- $15.0 million class M-5 downgraded to 'BBB' from 'A' (BL: 31.24, LCR: 1.65); -- $23.2 million class M-6 downgraded to 'B' from 'A-' (BL: 22.27, LCR: 1.18); -- $13.5 million class M-7 downgraded to 'B' from 'BBB+' (BL: 20.37, LCR: 1.08); -- $18.0 million class M-8 downgraded to 'CCC' from 'BBB-' (BL: 17.88, LCR: 0.95); -- $20.2 million class M-9 downgraded to 'CCC' from 'BB' (BL: 15.15, LCR: 0.80); -- $11.2 million class M-10 downgraded to 'CC/DR4' from 'BB-' (BL: 14.04, LCR: 0.74). Deal Summary -- Originators: 100% Ameriquest Mortgage Co. and Town & Country Credit Co.; -- 60+ day Delinquency: 25.52%; -- Realized Losses to date (% of Original Balance): 1.69%; -- Expected Remaining Losses (% of Current Balance): 18.88%; -- Cumulative Expected Losses (% of Original Balance): 6.64%. Series 2005-R2 -- $26.7 million class A-1A affirmed at 'AAA' (BL: 86.17, LCR: 4.75); -- $6.7 million class A-1B affirmed at 'AAA' (BL: 81.26, LCR: 4.48); -- $39.4 million class A-2A affirmed at 'AAA' (BL: 80.68, LCR: 4.45); -- $9.9 million class A-2B affirmed at 'AAA' (BL: 78.27, LCR: 4.31); -- $5.0 million class A-3B affirmed at 'AAA' (BL: 98.86, LCR: 5.45); -- $26.4 million class A-3C affirmed at 'AAA' (BL: 82.81, LCR: 4.56); -- $3.5 million class A-3D affirmed at 'AAA' (BL: 80.37, LCR: 4.43); -- $31.2 million class M-1 affirmed at 'AA+' (BL: 69.85, LCR: 3.85); -- $49.8 million class M-2 affirmed at 'AA' (BL: 52.80, LCR: 2.91); -- $16.8 million class M-3 affirmed at 'AA-' (BL: 47.51, LCR: 2.62); -- $28.8 million class M-4 affirmed at 'A+' (BL: 39.77, LCR: 2.19); -- $16.8 million class M-5 affirmed at 'A' (BL: 33.51, LCR: 1.85); -- $12.0 million class M-6 downgraded to 'BBB' from 'A-' (BL: 28.38, LCR: 1.56); -- $19.2 million class M-7 downgraded to 'B' from 'BBB+' (BL: 21.39, LCR: 1.18); -- $9.0 million class M-8 downgraded to 'B' from 'BBB' (BL: 19.83, LCR: 1.09); -- $13.2 million class M-9 downgraded to 'B' from 'BBB' (BL: 17.64, LCR: 0.97); -- $7.8 million class M-10 downgraded to 'CCC' from 'BB+' (BL: 16.24, LCR: 0.89); -- $12.0 million class M-11 downgraded to 'CCC' from 'BB' (BL: 14.58, LCR: 0.80). Deal Summary -- Originators: 100% Ameriquest Mortgage Co. and Town & Country Credit Co.; -- 60+ day Delinquency: 22.01%; -- Realized Losses to date (% of Original Balance): 1.57%; -- Expected Remaining Losses (% of Current Balance): 18.15%; -- Cumulative Expected Losses (% of Original Balance): 6.81%. Series 2005-R3 -- $88.6 million class A-1A affirmed at 'AAA' (BL: 61.18, LCR: 4.07); -- $22.2 million class A-1B affirmed at 'AAA' (BL: 49.64, LCR: 3.3); -- $92.3 million class A-2A affirmed at 'AAA' (BL: 60.64, LCR: 4.04); -- $23.1 million class A-2B affirmed at 'AAA' (BL: 49.60, LCR: 3.30); -- $122.2 million class A-3D affirmed at 'AAA' (BL: 55.28, LCR: 3.68); -- $53.0 million class M-1 affirmed at 'AA+' (BL: 42.23, LCR: 2.81); -- $47.0 million class M-2 affirmed at 'AA' (BL: 35.02, LCR: 2.33); -- $27.0 million class M-3 affirmed at 'AA-' (BL: 30.62, LCR: 2.04); -- $25.0 million class M-4 affirmed at 'A+' (BL: 26.37, LCR: 1.76); -- $19.0 million class M-5 affirmed at 'A' (BL: 23.12, LCR: 1.54); -- $13.0 million class M-6 affirmed at 'A-' (BL: 20.83, LCR: 1.39); -- $10.0 million class M-7 affirmed at 'BBB+' (BL: 18.95, LCR: 1.26); -- $10.0 million class M-8 affirmed at 'BBB' (BL: 17.08, LCR: 1.14); -- $13.0 million class M-9 downgraded to 'B' from 'BBB-' (BL: 14.50, LCR: 0.97); -- $23.0 million class M-10 downgraded to 'CC/DR5' from 'BB' (BL: 10.21, LCR: 0.68). Deal Summary -- Originators: 100% Ameriquest Mortgage Co. and Town & Country Credit Co.; -- 60+ day Delinquency: 22.49%; -- Realized Losses to date (% of Original Balance): 0.99%; -- Expected Remaining Losses (% of Current Balance): 15.02%; -- Cumulative Expected Losses (% of Original Balance): 5.48%. Series 2005-R4 -- $266.4 million class A-1A affirmed at 'AAA' (BL: 58.58, LCR: 4.66); -- $66.6 million class A-1B affirmed at 'AAA' (BL: 47.86, LCR: 3.81); -- $26.3 million class A-2C affirmed at 'AAA' (BL: 83.39, LCR: 6.63); -- $46.0 million class A-2D affirmed at 'AAA' (BL: 49.02, LCR: 3.90); -- $41.0 million class M-1 affirmed at 'AA+' (BL: 38.70, LCR: 3.08); -- $48.0 million class M-2 affirmed at 'AA+' (BL: 32.77, LCR: 2.61); -- $29.0 million class M-3 affirmed at 'AA' (BL: 28.85, LCR: 2.29); -- $25.0 million class M-4 affirmed at 'AA-' (BL: 25.21, LCR: 2.01); -- $21.0 million class M-5 downgraded to 'A' from 'A+' (BL: 22.04, LCR: 1.75); -- $13.0 million class M-6 downgraded to 'BBB' from 'A' (BL: 19.96, LCR: 1.59); -- $10.0 million class M-7 downgraded to 'BB' from 'A' (BL: 18.25, LCR: 1.45); -- $10.0 million class M-8 downgraded to 'BB' from 'A-' (BL: 16.54, LCR: 1.32); -- $13.0 million class M-9 downgraded to 'B' from 'BBB' (BL: 14.15, LCR: 1.13); -- $13.0 million class M-10 downgraded to 'CCC' from 'BBB-' (BL: 11.75, LCR: 0.93); -- $11.0 million class M-11 downgraded to 'CCC' from 'BB+' (BL: 10.11, LCR: 0.80). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 24.44%; -- Realized Losses to date (% of Original Balance): 0.70%; -- Expected Remaining Losses (% of Current Balance): 12.57%; -- Cumulative Expected Losses (% of Original Balance): 4.79%. Series 2005-R5 -- $159.9 million class A-1A affirmed at 'AAA' (BL: 71.49, LCR: 3.90); -- $44.0 million class A-1B affirmed at 'AAA' (BL: 61.45, LCR: 3.35); -- $15.0 million class A-2B affirmed at 'AAA' (BL: 81.02, LCR: 4.42); -- $19.5 million class A-2C affirmed at 'AAA' (BL: 61.29, LCR: 3.34); -- $48.0 million class M-1 affirmed at 'AA+' (BL: 53.07, LCR: 2.90); -- $43.5 million class M-2 affirmed at 'AA+' (BL: 44.94, LCR: 2.45); -- $29.2 million class M-3 affirmed at 'AA' (BL: 39.19, LCR: 2.14); -- $24.0 million class M-4 affirmed at 'AA-' (BL: 34.27, LCR: 1.87); -- $23.2 million class M-5 downgraded to 'BBB' from 'A' (BL: 29.50, LCR: 1.61); -- $18.8 million class M-6 downgraded to 'BB' from 'A-' (BL: 25.58, LCR: 1.40); -- $15.0 million class M-7 downgraded to 'B' from 'BBB+' (BL: 18.78, LCR: 1.02); -- $14.2 million class M-8 downgraded to 'CCC' from 'BBB' (BL: 16.52, LCR: 0.90); -- $8.2 million class M-9 downgraded to 'CCC' from 'BBB-' (BL: 15.22, LCR: 0.83); -- $8.2 million class M-10 downgraded to 'CCC' from 'BB' (BL: 14.01, LCR: 0.76); -- $11.2 million class M-11 downgraded to 'CC/DR4' from 'BB' (BL: 12.71, LCR: 0.69). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 21.83%; -- Realized Losses to date (% of Original Balance): 1.36%; -- Expected Remaining Losses (% of Current Balance): 18.33%; -- Cumulative Expected Losses (% of Original Balance): 7.41%. Series 2005-R6 -- $105.0 million class A-1A affirmed at 'AAA' (BL: 74.29, LCR: 3.56); -- $26.2 million class A-1B affirmed at 'AAA' (BL: 63.91, LCR: 3.07); -- $58.8 million class A-2 affirmed at 'AAA' (BL: 66.85, LCR: 3.21); -- $57.0 million class M-1 affirmed at 'AA+' (BL: 52.35, LCR: 2.51); -- $49.8 million class M-2 affirmed at 'AA' (BL: 40.87, LCR: 1.96); -- $13.8 million class M-3 downgraded to 'A' from 'AA-' (BL: 37.53, LCR: 1.80); -- $18.0 million class M-4 downgraded to 'BBB' from 'A+' (BL: 33.10, LCR: 1.59); -- $16.8 million class M-5 downgraded to 'BB' from 'A' (BL: 28.90, LCR: 1.39); -- $12.6 million class M-6 downgraded to 'BB' from 'A-' (BL: 25.73, LCR: 1.23); -- $10.2 million class M-7 downgraded to 'B' from 'BBB+' (BL: 19.81, LCR: 0.95); -- $11.4 million class M-8 downgraded to 'CCC' from 'BBB' (BL: 17.67, LCR: 0.85); -- $11.4 million class M-9 downgraded to 'CC/DR4' from 'BB' (BL: 15.51, LCR: 0.74); -- $13.2 million class M-10 downgraded to 'CC/DR4' from 'B' (BL: 13.47, LCR: 0.65); -- $6.6 million class M-11 downgraded to 'CC/DR6' from 'B' (BL: 12.54, LCR: 0.60). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 23.53%; -- Realized Losses to date (% of Original Balance): 1.42%; -- Expected Remaining Losses (% of Current Balance): 20.84%; -- Cumulative Expected Losses (% of Original Balance): 8.76%. Series 2005-R7 -- $61.4 million class A-1C affirmed at 'AAA' (BL: 95.65, LCR: 6.19); -- $191.9 million class A-1D affirmed at 'AAA' (BL: 59.86, LCR: 3.87); -- $28.5 million class A-2C affirmed at 'AAA' (BL: 87.15, LCR: 5.64); -- $27.6 million class A-2D affirmed at 'AAA' (BL: 59.34, LCR: 3.84); -- $48.0 million class M-1 affirmed at 'AA+' (BL: 49.26, LCR: 3.19); -- $43.5 million class M-2 affirmed at 'AA+' (BL: 42.63, LCR: 2.76); -- $30.8 million class M-3 affirmed at 'AA' (BL: 37.50, LCR: 2.43); -- $23.2 million class M-4 affirmed at 'AA-' (BL: 33.46, LCR: 2.16); -- $23.2 million class M-5 affirmed at 'A+' (BL: 29.33, LCR: 1.90); -- $16.5 million class M-6 downgraded to 'BBB' from 'A' (BL: 26.03, LCR: 1.68); -- $13.5 million class M-7 downgraded to 'BBB' from 'A-' (BL: 23.52, LCR: 1.52); -- $14.2 million class M-8 downgraded to 'BB' from 'BBB+' (BL: 21.05, LCR: 1.36); -- $13.5 million class M-9 downgraded to 'B' from 'BB' (BL: 19.19, LCR: 1.24); -- $11.2 million class M-10 downgraded to 'CCC' from 'B' (BL: 13.82, LCR: 0.89); -- $8.2 million class M-11 downgraded to 'CCC' from 'B' (BL: 12.30, LCR: 0.80); -- $5.2 million class M-12 downgraded to 'CCC' from 'B' (BL: 12.09, LCR: 0.78). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 20.20%; -- Realized Losses to date (% of Original Balance): 0.91%; -- Expected Remaining Losses (% of Current Balance): 15.46%; -- Cumulative Expected Losses (% of Original Balance): 6.80%. Series 2005-R8 -- $197.7 million class A-1 affirmed at 'AAA' (BL: 58.30, LCR: 3.48); -- $56.1 million class A-2C affirmed at 'AAA' (BL: 54.65, LCR: 3.26); -- $59.5 million class A-2D affirmed at 'AAA' (BL: 57.19, LCR: 3.41); -- $49.6 million class M-1 affirmed at 'AA+' (BL: 49.60, LCR: 2.96); -- $38.2 million class M-2 affirmed at 'AA+' (BL: 43.25, LCR: 2.58); -- $26.2 million class M-3 affirmed at 'AA' (BL: 38.74, LCR: 2.31); -- $24.8 million class M-4 affirmed at 'AA-' (BL: 34.35, LCR: 2.05); -- $19.8 million class M-5 downgraded to 'A' from 'A+' (BL: 30.80, LCR: 1.84); -- $21.2 million class M-6 downgraded to 'BBB' from 'A' (BL: 26.95, LCR: 1.61); -- $14.2 million class M-7 downgraded to 'BB' from 'A-' (BL: 23.62, LCR: 1.41); -- $12.8 million class M-8 downgraded to 'BB' from 'BBB+' (BL: 20.93, LCR: 1.25); -- $10.6 million class M-9 downgraded to 'B' from 'BBB' (BL: 19.72, LCR: 1.18); -- $8.5 million class M-10 downgraded to 'CCC' from 'BBB-' (BL: 15.11, LCR: 0.90); -- $11.3 million class M-11 downgraded to 'CCC' from 'BB' (BL: 12.86, LCR: 0.77); -- $5.0 million class M-12 downgraded to 'CC/DR5' from 'BB' (BL: 12.31, LCR: 0.74). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 19.21%; -- Realized Losses to date (% of Original Balance): 0.68%; -- Expected Remaining Losses (% of Current Balance): 16.75%; -- Cumulative Expected Losses (% of Original Balance): 7.40%. Series 2005-R9 -- $188.5 million class A-1 affirmed at 'AAA' (BL: 41.81, LCR: 3.41); -- $27.1 million class A-2B affirmed at 'AAA' (BL: 45.29, LCR: 3.69); -- $9.4 million class A-2C affirmed at 'AAA' (BL: 42.17, LCR: 3.43); -- $19.7 million class AF-2 affirmed at 'AAA' (BL: 97.58, LCR: 7.95); -- $62.4 million class AF-3 affirmed at 'AAA' (BL: 83.42, LCR: 6.79); -- $60.3 million class AF-4 affirmed at 'AAA' (BL: 75.16, LCR: 6.12); -- $48.4 million class AF-5 affirmed at 'AAA' (BL: 71.10, LCR: 5.79); -- $39.5 million class AF-6 affirmed at 'AAA' (BL: 58.51, LCR: 4.77); -- $93.9 million class M-1 affirmed at 'AA+' (BL: 28.37, LCR: 2.31); -- $37.0 million class M-2 downgraded to 'A' from 'AA' (BL: 22.98, LCR: 1.87); -- $12.3 million class M-3 downgraded to 'BBB' from 'AA-' (BL: 21.17, LCR: 1.72); -- $11.7 million class M-4 downgraded to 'BBB' from 'A+' (BL: 19.42, LCR: 1.58); -- $13.7 million class M-5 downgraded to 'BB' from 'A' (BL: 17.02, LCR: 1.39); -- $8.9 million class M-6 downgraded to 'BB' from 'A-' (BL: 15.54, LCR: 1.27); -- $9.6 million class M-7 downgraded to 'B' from 'BBB+' (BL: 14.08, LCR: 1.15); -- $6.9 million class M-8 downgraded to 'B' from 'BBB' (BL: 13.10, LCR: 1.07); -- $11.7 million class M-9 downgraded to 'CCC' from 'BBB-' (BL: 11.52, LCR: 0.94); -- $11.7 million class M-10 downgraded to 'CCC' from 'BB' (BL: 9.90, LCR: 0.81); -- $7.5 million class M-11 downgraded to 'CC/DR5' from 'B' (BL: 9.05, LCR: 0.74). Deal Summary -- Originators: 100% Ameriquest Mortgage Co. and Town & Country Credit Co.; -- 60+ day Delinquency: 14.17%; -- Realized Losses to date (% of Original Balance): 0.62%; -- Expected Remaining Losses (% of Current Balance): 12.28%; -- Cumulative Expected Losses (% of Original Balance): 6.83%. Series 2005-R10 -- $411.2 million class A-1 affirmed at 'AAA' (BL: 49.88, LCR: 3.70); -- $128.7 million class A-2B affirmed at 'AAA' (BL: 60.04, LCR: 4.45); -- $46.3 million class A-2C affirmed at 'AAA' (BL: 48.39, LCR: 3.59); -- $65.2 million class M-1 affirmed at 'AA+' (BL: 41.96, LCR: 3.11); -- $57.2 million class M-2 affirmed at 'AA+' (BL: 36.08, LCR: 2.68); -- $41.1 million class M-3 affirmed at 'AA' (BL: 31.78, LCR: 2.36); -- $29.1 million class M-4 affirmed at 'AA' (BL: 28.70, LCR: 2.13); -- $30.1 million class M-5 affirmed at 'A+' (BL: 25.51, LCR: 1.89); -- $26.1 million class M-6 downgraded to 'BBB' from 'A' (BL: 22.68, LCR: 1.68); -- $26.1 million class M-7 downgraded to 'BB' from 'A-' (BL: 19.67, LCR: 1.46); -- $16.1 million class M-8 downgraded to 'BB' from 'BBB+' (BL: 16.96, LCR: 1.26); -- $14.0 million class M-9 downgraded to 'B' from 'BBB' (BL: 15.74, LCR: 1.17); -- $20.1 million class M-10 downgraded to 'B' from 'BBB-' (BL: 14.31, LCR: 1.06). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 16.34%; -- Realized Losses to date (% of Original Balance): 0.69%; -- Expected Remaining Losses (% of Current Balance): 13.49%; -- Cumulative Expected Losses (% of Original Balance): 7.15%. Series 2005-R11 -- $393.1 million class A-1 affirmed at 'AAA' (BL: 48.18, LCR: 3.26); -- $93.2 million class A-2C affirmed at 'AAA' (BL: 56.55, LCR: 3.82); -- $56.3 million class A-2D affirmed at 'AAA' (BL: 47.70, LCR: 3.22); -- $59.5 million class M-1 affirmed at 'AA+' (BL: 40.98, LCR: 2.77); -- $54.0 million class M-2 affirmed at 'AA+' (BL: 34.88, LCR: 2.36); -- $36.6 million class M-3 affirmed at 'AA' (BL: 30.71, LCR: 2.08); -- $27.5 million class M-4 downgraded to 'A' from 'AA-' (BL: 27.55, LCR: 1.86); -- $28.4 million class M-5 downgraded to 'BBB' from 'A+' (BL: 24.26, LCR: 1.64); -- $22.9 million class M-6 downgraded to 'BB' from 'A' (BL: 19.86, LCR: 1.34); -- $22.9 million class M-7 downgraded to 'B' from 'A-' (BL: 16.78, LCR: 1.13); -- $15.6 million class M-8 downgraded to 'B' from 'BBB+' (BL: 15.30, LCR: 1.03); -- $14.6 million class M-9 downgraded to 'CCC' from 'BBB' (BL: 13.68, LCR: 0.92); -- $28.4 million class M-10 downgraded to 'CCC' from 'BBB-' (BL: 11.83, LCR: 0.80). Deal Summary -- Originators: 100% Ameriquest Mortgage Co.; -- 60+ day Delinquency: 16.00%; -- Realized Losses to date (% of Original Balance): 0.60%; -- Expected Remaining Losses (% of Current Balance): 14.80%; -- Cumulative Expected Losses (% of Original Balance): 7.79%. 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 2005 with regard to continued poor loan performance and home price weakness. AMERIQUEST MORTGAGE: Fitch Takes Rating Actions on Var. Classes --------------------------------------------------------------- Fitch Ratings has taken rating actions on these Ameriquest Mortgage Securities Inc. mortgage-backed pass-through certificates: Series 2001-A -- Class A affirmed at 'AAA'. Series 2002-A -- Classes A & IO affirmed at 'AAA'. Series 2002-B -- Classes A & IO affirmed at 'AAA'. Series 2002-C -- Classes AF-6, AV, & PO affirmed at 'AAA'; -- Class M-1 affirmed at 'BBB'; -- Class M-2 affirmed at 'CC/DR4'. Series 2002-D -- Classes AF & AV affirmed at 'AAA'; -- Class M-1 affirmed at 'A+'; -- Class M-downgraded to 'BB' from 'BBB+'. Series 2002-4 -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'BBB'; -- Class M-4 downgraded to 'C/DR4' from 'B'. Series 2003-5 -- Classes A-5 & A-6 affirmed at 'AAA'; -- Class M1 affirmed at 'AA+'; -- Class M2 affirmed at 'AA'; -- Class M3 affirmed at 'A+'. Series 2003-9 -- Classes AF-2, AF-3, AV-1, & AV-2 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 affirmed at 'BBB'. Series 2003-13 -- Class AF-4, AF-5, AF-6, AV-1, & AV-2 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 downgraded to 'BB' from 'BBB'. Series 2003-AR1 -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'A'; -- Class M-4 affirmed at 'BBB'. Series 2004-FR1 -- Class A-5 to A-7 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- 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 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+'; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB-'. Series 2004-R7 -- Classes A-1, A-4 & A-6 affirmed at 'AAA'; -- Class M-1 affirmed at 'AAA'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA+'; -- Class M-4 affirmed at 'AA'; -- Class M-5 affirmed at 'AA-'; -- Class M-6 affirmed at 'A+'; -- Class M-7 downgraded to 'A-' from 'A'; -- Class M-8 downgraded to 'BBB+' from 'A-'; -- Class M-9 downgraded to 'BBB' from 'BBB+'; -- Class M-10 downgraded to 'BB' from 'BBB'. Series 2004-R8 -- Classes A-1, A-4 & A-5 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 downgraded to 'A' from 'A+'; -- Class M-5 downgraded to 'BBB+' from 'A'; -- Class M-6 downgraded to 'BBB' from 'A-'; -- Class M-7 downgraded to 'BBB-' from 'BBB+'; -- Class M-8 downgraded to 'BB' from 'BBB', placed on Rating Watch Negative; -- Class M-9 downgraded to 'B' from 'BBB-', placed on Rating Watch Negative; -- Class M-10 downgraded to 'B' from 'BB+', placed on Rating Watch Negative. Series 2004-R10 -- Classes A-1, A-4 & A-5 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 downgraded to 'A' from 'A+'; -- Class M-5 downgraded to 'A-' from 'A'; -- Class M-6 downgraded to 'BBB' from 'A-'; -- Class M-7 downgraded to 'BBB-' from 'BBB+'; -- Class M-8 downgraded to 'BB' from 'BBB', placed on 'Rating Watch Negative; -- Class M-9 downgraded to 'BB' from 'BBB-', placed on Rating Watch Negative; -- Class M-10 downgraded to 'B' from 'BB+', placed on Rating Watch Negative. The affirmations, affecting approximately $2.1 billion of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. The downgrades, affecting approximately $283.4 million of the outstanding certificates, are taken as a result of a deteriorating relationship between credit enhancement and expected loss. In addition, $47.1 million of the outstanding certificates are placed on 'Rating Watch Negative.' The collateral of the above transactions generally consists of fully-amortizing fixed-rate and adjustable-rate mortgage loans extended to subprime borrowers and secured by first-liens on one- to four-family residential properties. The loans were originated or purchased by Ameriquest Mortgage Company and are serviced by Citi Residential Lending Inc., which is rated 'RPS3+' by Fitch. As of the March 2008 remittance date, the pool factors of the above transactions range from 4% (series 2001-A) to 39% (series 2004-FR1). In addition, the seasoning ranges from 42 months (series 2004-R10) to 76 months (series 2001-A). AMR CORP: Selling Asset-Management Subsidiary for $480 Million -------------------------------------------------------------- AMR Corporation, the parent company of American Airlines, Inc., reached a definitive agreement to sell American Beacon Advisors, Inc., its wholly owned asset-management subsidiary, to Lighthouse Holdings, Inc., which is owned by investment funds affiliated with Pharos Capital Group, LLC and TPG Capital, two private equity firms. AMR will receive total consideration of roughly $480 million. While primarily a cash transaction, AMR will retain a minority equity stake in the business. AMR expects to close the sale this summer subject to satisfactory completion of customary closing conditions as well as the approval of the Board of Trustees of the American Beacon family of mutual funds, shareholders of the American Beacon family of mutual funds, and consents from other American Beacon clients. AMR, which has been engaged in an ongoing strategic value review process related to certain businesses under the AMR umbrella, believes that the sale is in the best interests of AMR and its shareholders and will benefit American Beacon, its employees, customers and other stakeholders. The sale is intended to allow AMR and its shareholders to recognize the full value of American Beacon while allowing AMR to focus on its core airline business. American Beacon currently provides a number of services for AMR and its affiliates, including cash management for AMR and investment advisory services and investment management services for American's pension, 401(k) and other health and welfare plans. AMR anticipates that it will continue its relationships with American Beacon after the closing. However, to ensure that continuing relationships between American Beacon and American's pension, 401(k) and other health and welfare plans after closing satisfy the fiduciary duties and other rules that apply to these plans, an independent third party has been engaged to review and approve any such continuing relationships. In addition to currently providing these investment management services and asset oversight services to AMR, American Beacon currently serves as the investment manager of the American Beacon Funds, a family of mutual funds with both institutional and retail shareholders, and provides customized fixed income portfolio management services. Subject to the approval of the shareholders of the American Beacon family of mutual funds, it is anticipated that American Beacon will continue to be investment manager for the mutual funds. American Beacon Advisors has consistently grown since its creation in 1987, adding new products and growing average assets under management to $65 billion in 2007. For 2007, on a separate company basis, American Beacon's gross revenue was $101 million and income before income taxes was approximately $48 million, both of which increased approximately 40% over 2006. "The decision comes after a careful evaluation of the strategy that we believe will deliver the most value to our shareholders and create the ownership structure that makes the most sense for American Beacon," AMR Chairman and CEO Gerard Arpey said. "What started out more than 20 years ago as a smart way to manage AMR's benefit plans and cash has evolved and grown significantly into a successful financial management and advisory firm that is fully capable of standing on its own and is well positioned to pursue further growth opportunities outside of AMR." Mr. Arpey added that AMR is looking forward to engaging American Beacon for cash management services after the transaction closes and will remain actively engaged with American Beacon through a 10% ownership interest. "Pharos and TPG believe that the asset management business is a robust sector, in which American Beacon is a strong leader, with an outstanding, 20-year track record of performance in multiple asset classes across a variety of investment cycles," Kneeland Youngblood, co-founder and managing partner of Pharos Capital, said. "We look forward to working with the American Beacon team and TPG to fully leverage its strengths into industry-leading growth as well as continuing its superior customer service and performance. And, we welcome the opportunity to work with AMR not only as a significant client, but also as a long-term partner." "Having significantly grown our third-party revenue over the past several years, we believe the timing of the divestiture is just right for our company, our customers and our employees," American Beacon Advisors Chairman William F. Quinn said. "We're looking forward to focusing on growing our core business, while continuing to serve the needs of our customers and building on our successful history under a new ownership structure. Our management team and employees are excited about the many opportunities that this transaction will present to American Beacon, and our customers can rest assured that we intend to provide the same high level of service and expertise that they have come to expect from American Beacon in the past." Credit Suisse advised AMR on the transaction and Rothschild Inc. continues to advise AMR in its ongoing strategic value review. Merrill Lynch & Co. acted as exclusive financial advisor to Pharos Capital and TPG Capital. About AMR Corp. 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. 30, 2007, following the announcement by AMR Corp. that it intends to divest its American Eagle Holding Corp. subsidiary in 2008, Fitch expects no near-term impact on the debt ratings of AMR and its principal operating subsidiary, American Airlines Inc. Fitch affirmed both entities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR to Positive. ARGENT SECURITIES: Fitch Slashes Ratings on $2 Bil. Certificates ---------------------------------------------------------------- Fitch Ratings has taken rating actions on four Argent Securities Inc. mortgage pass-through certificate transactions. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed. Affirmations total $2 billion and downgrades total $2 billion. Additionally, $1.1 billion was placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2005-W2 -- $393.5 million class A-1 affirmed at 'AAA' (BL: 55.47, LCR: 2.25); -- $151.3 million class A-2B1 affirmed at 'AAA' (BL: 57.32, LCR: 2.32); -- $66.4 million class A-2B2 affirmed at 'AAA' (BL: 57.32, LCR: 2.32); -- $75.8 million class A-2C affirmed at 'AAA' (BL: 54.13, LCR: 2.19); -- $90.8 million class M-1 downgraded to 'A' from 'AA+' (BL: 47.28, LCR: 1.92); -- $79.8 million class M-2 downgraded to 'BBB' from 'AA+' (BL: 40.99, LCR: 1.66); -- $55.0 million class M-3 downgraded to 'BB' from 'AA' (BL: 36.51, LCR: 1.48); -- $41.2 million class M-4 downgraded to 'BB' from 'AA' (BL: 33.11, LCR: 1.34); -- $41.2 million class M-5 downgraded to 'B' from 'AA-' (BL: 29.68, LCR: 1.20); -- $37.0 million class M-6 downgraded to 'B' from 'A+' (BL: 26.54, LCR: 1.08); -- $38.6 million class M-7 downgraded to 'CCC' from 'A' (BL: 23.13, LCR: 0.94); -- $27.5 million class M-8 downgraded to 'CCC' from 'BBB+' (BL: 20.68, LCR: 0.84); -- $16.5 million class M-9 downgraded to 'CCC' from 'BBB-' (BL: 19.15, LCR: 0.78); -- $27.5 million class M-10 downgraded to 'CC/DR5' from 'BB' (BL: 16.60, LCR: 0.67); -- $13.8 million class M-11 downgraded to 'CC/DR5' from 'BB-' (BL: 14.21, LCR: 0.58); -- $30.2 million class M-12 downgraded to 'CC/DR6' from 'B' (BL: 12.54, LCR: 0.51); -- $13.8 million class M-13 downgraded to 'C/DR6' from 'B' (BL: 12.06, LCR: 0.49). Deal Summary -- Originators: 100% Argent Mortgage Co.; -- 60+ day Delinquency: 29.22%; -- Realized Losses to date (% of Original Balance): 1.79%; -- Expected Remaining Losses (% of Current Balance): 24.68%; -- Cumulative Expected Losses (% of Original Balance): 12.85%. Series 2005-W3 -- $233.0 million class A-1 affirmed at 'AAA' (BL: 57.28, LCR: 2.15); -- $15.6 million class A-2B affirmed at 'AAA' (BL: 98.58, LCR: 3.70); -- $164.3 million class A-2C affirmed at 'AAA' (BL: 63.99, LCR: 2.40); -- $128.3 million class A-2D affirmed at 'AAA' (BL: 55.48, LCR: 2.08); -- $72.0 million class M-1 downgraded to 'A' from 'AA+' (BL: 49.09, LCR: 1.84); -- $68.0 million class M-2 downgraded to 'BBB' from 'AA+' (BL: 42.59, LCR: 1.60); -- $45.0 million class M-3 downgraded to 'BB' from 'AA+' (BL: 38.13, LCR: 1.43); -- $33.0 million class M-4 downgraded to 'BB' from 'AA-' (BL: 34.77, LCR: 1.30); -- $33.0 million class M-5 downgraded to 'B' from 'A+' (BL: 31.36, LCR: 1.18); -- $29.0 million class M-6 downgraded to 'B' from 'A-' (BL: 28.30, LCR: 1.06); -- $32.0 million class M-7 downgraded to 'CCC' from 'BBB-' (BL: 24.80, LCR: 0.93); -- $23.0 million class M-8 downgraded to 'CCC' from 'BB' (BL: 22.29, LCR: 0.84); -- $21.0 million class M-9 downgraded to 'CCC' from 'BB' (BL: 19.95, LCR: 0.75); -- $14.0 million class M-10 downgraded to 'CC/DR5' from 'B' (BL: 18.41, LCR: 0.69); -- $15.0 million class M-11 downgraded to 'CC/DR5' from 'B' (BL: 16.98, LCR: 0.64); -- $10.0 million class M-12 affirmed at 'C/DR5' (BL: 16.28, LCR: 0.61). Deal Summary -- Originators: 100% Argent Mortgage Co.; -- 60+ day Delinquency: 31.05%; -- Realized Losses to date (% of Original Balance): 1.57%; -- Expected Remaining Losses (% of Current Balance): 26.65%; -- Cumulative Expected Losses (% of Original Balance): 14.71%. Series 2005-W4 -- $428.2 million class A-1A2 affirmed at 'AAA' (BL: 56.79, LCR: 2.11); -- $151.8 million class A-1A3 rated 'AAA', placed on Rating Watch Negative (BL: 50.44, LCR: 1.87); -- $145.0 million class A-1B downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 41.21, LCR: 1.53); -- $13.4 million class A-2B affirmed at 'AAA' (BL: 99.09, LCR: 3.68); -- $206.3 million class A-2C affirmed at 'AAA' (BL: 69.08, LCR: 2.57); -- $181.4 million class A-2D downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 40.87, LCR: 1.52); -- $147.7 million class M-1 downgraded to 'B' from 'A' (BL: 31.73, LCR: 1.18); -- $72.3 million class M-2 downgraded to 'B' from 'BBB' (BL: 27.23, LCR: 1.01); -- $39.3 million class M-3 downgraded to 'CCC' from 'BB' (BL: 24.77, LCR: 0.92); -- $37.7 million class M-4 downgraded to 'CCC' from 'B' (BL: 22.39, LCR: 0.83); -- $36.1 million class M-5 downgraded to 'CC/DR5' from 'B' (BL: 20.03, LCR: 0.74); -- $26.7 million class M-6 downgraded to 'CC/DR5' from 'CCC' (BL: 18.21, LCR: 0.68); -- $28.3 million class M-7 downgraded to 'CC/DR6' from 'CCC' (BL: 16.37, LCR: 0.61); -- $26.7 million class M-8 downgraded to 'CC/DR6' from 'CCC' (BL: 14.99, LCR: 0.56). Deal Summary -- Originators: 100% Argent Mortgage Co.; -- 60+ day Delinquency: 31.09%; -- Realized Losses to date (% of Original Balance): 1.62%; -- Expected Remaining Losses (% of Current Balance): 26.91%; -- Cumulative Expected Losses (% of Original Balance): 15.51%. Series 2005-W5 -- $347.6 million class A-1 rated 'AAA', placed on Rating Watch Negative (BL: 51.08, LCR: 1.82); -- $85.4 million class A-2B affirmed at 'AAA' (BL: 77.36, LCR: 2.76); -- $138.1 million class A-2C rated 'AAA', placed on Rating Watch Negative (BL: 54.62, LCR: 1.95); -- $95.2 million class A-2D rated 'AAA', placed on Rating Watch Negative (BL: 49.20, LCR: 1.76); -- $76.0 million class M-1 downgraded to 'BBB' from 'AA+' (BL: 42.30, LCR: 1.51); -- $68.0 million class M-2 downgraded to 'BB' from 'AA-' (BL: 36.14, LCR: 1.29); -- $46.0 million class M-3 downgraded to 'B' from 'A+' (BL: 31.94, LCR: 1.14); -- $33.0 million class M-4 downgraded to 'B' from 'A' (BL: 28.90, LCR: 1.03); -- $33.0 million class M-5 downgraded to 'CCC' from 'BBB+' (BL: 25.85, LCR: 0.92); -- $31.0 million class M-6 downgraded to 'CCC' from 'BBB' (BL: 22.89, LCR: 0.82); -- $31.0 million class M-7 downgraded to 'CC/DR5' from 'BB' (BL: 19.73, LCR: 0.70); -- $23.0 million class M-8 downgraded to 'CC/DR5' from 'BB' (BL: 17.53, LCR: 0.63); -- $23.0 million class M-9 downgraded to 'CC/DR6' from 'B' (BL: 15.86, LCR: 0.57). Deal Summary -- Originators: 100% Argent Mortgage Co.; -- 60+ day Delinquency: 31.59%; -- Realized Losses to date (% of Original Balance): 1.64%; -- Expected Remaining Losses (% of Current Balance): 28.03%; -- Cumulative Expected Losses (% of Original Balance): 17.09%. 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 2005 with regard to continued poor loan performance and home price weakness. ARGENT SECURITIES: Fitch Downgrades Ratings on 17 Cert. Classes --------------------------------------------------------------- Fitch Ratings has taken rating actions on these Argent Securities Inc. mortgage-backed pass-through certificates: Series 2003-W1 -- Class M-1 affirmed at 'AAA'; -- Class M-2 affirmed at 'AA-'; -- Class M-3 affirmed at 'A+'; -- Class M-4 affirmed at 'A' -- Class M-5 affirmed at 'A-'; -- Classes MF-6 & MV-6 affirmed at 'BBB-'. Series 2003-W5 -- Classes AF-4, AF-5, AF-6, AV-1, & AV-2 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+' -- Class M-5 affirmed at 'BBB'; -- Classes MF-6 & MV-6 affirmed at 'BBB-'. Series 2003-W6 -- Classes AF-4, AF-5, & AV-1 affirmed at 'AAA'; -- Class M-2 affirmed at 'BBB'; -- Class M-3 affirmed at 'BBB-'. Series 2003-W7 -- Classes A-1, A-2, & A-2B affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Classes M-3 & M-3B affirmed at 'A-'; -- Classes M-4B affirmed at 'BBB+' -- Class M-5 downgraded to 'BB' from 'BBB'. Series 2003-W9 -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Classes M-3 & M-3B affirmed at 'A-'; -- Class M-4B affirmed at 'BBB+' -- Class M-5 affirmed at 'BBB'. Series 2004-W1 -- Classes AF, AV-1, AV-2, & AV-4 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+' -- Class M-5 affirmed at 'BBB'; -- Class M-6 downgraded to 'BB' from 'BBB-'; -- Class M-7 downgraded to 'B' from 'BB+'. Series 2004-W2 -- Classes AF & AV-2 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+' -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class M-7 affirmed at 'BB+'. Series 2004-W5 -- Classes AF-5, AF-6, AV-2, & AV-3B affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+' -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class M-7 downgraded to 'B' from 'BB+'. Series 2004-W6 -- Classes AF, AV-2, & AV-5 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+' -- Class M-5 affirmed at 'BBB'; -- Class M-6 downgraded to 'BB' from 'BBB-'; -- Class M-7 downgraded to 'B' from 'BB+'. Series 2004-W7 -- Class A-2 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- 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 affirmed at 'A-'; -- Class M-7 downgraded to 'BBB' from 'BBB+'; -- Class M-8 downgraded to 'BBB-' from 'BBB'; -- Class M-9 downgraded to 'B' from 'BBB-'; -- Class M-10 downgraded to 'C/DR5' from 'BB+'. Series 2004-W11 -- Class A-1 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'AA-' -- Class M-5 downgraded to 'A-' from 'A+'; -- Class M-6 downgraded to 'BBB+' from 'A'; -- Class M-7 downgraded to 'BBB-' from 'A-'; -- Class M-8 downgraded to 'BB' from 'BBB+'; -- Class M-9 downgraded to 'BB' from 'BBB'; -- Class M-10 downgraded to 'B' from 'BBB-', placed on Rating Watch Negative; -- Class M-11 downgraded to 'B' from 'BB+', placed on Rating Watch Negative. The affirmations, affecting approximately $1.9 billion of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. The downgrades, affecting approximately $216.1 million of the outstanding certificates, are taken as a result of a deteriorating relationship between credit enhancement and expected loss. In addition, $20.8 million of the outstanding certificates are placed on Rating Watch Negative. The collateral of the above transactions generally consists of fully-amortizing fixed-rate and adjustable-rate mortgage loans extended to subprime borrowers and secured by first-liens on one- to four-family residential properties. The loans were originated or purchased by Argent Mortgage Company and are serviced by Citi Residential Lending Inc., which is rated 'RPS3+' by Fitch. As of the March 2008 remittance date, the pool factors of the above transactions range from 9% (series 2003-W1) to 20% (series 2004-W11). In addition, the seasoning ranges from 42 months (series 2004-W11) to 56 months (series 2003-W1). AUSTIN HEIGHTS: Case Summary & Two Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Austin Heights, LLC 256 Austin Road, Unit 6B Waterbury, CT 06705 Bankruptcy Case No.: 08-31151 Chapter 11 Petition Date: April 11, 2008 Court: District of Connecticut (New Haven) Judge: Lorraine Murphy Weil Debtor's Counsel: Patrick W. Boatman, Esq. (pboatman@boatmanlaw.com) 111 Founders Plaza, Ste. 1000 East Hartford, CT 06108 Tel: (860) 291-9061 Fax: (860) 291-9073 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million Debtor's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ City of Waterbury outstanding water & $40,000 Bureaus of Water & Sewer and sewer charges 21 East Aurora Street Waterbury, CT 06708 Kostin Ruffkess & Co. accounting services $16,000 Pond View Corporate Center 76 Batterson Park Road Farmington, CT 06032 AVAGO TECHNOLOGIES: Moody's 'B2' Rating Unaffected by CFO Stepdown ------------------------------------------------------------------ Moody's Investors Service commented that Avago Technologies Finance Pte. Ltd.'s ratings (corporate family rating of B2) and positive outlook will not be impacted by the company's announcement yesterday that its CFO, Mercedes Johnson, has decided to leave the company. Ms. Johnson will continue managing all her current administrative duties until the company and board of directors have completed their search for a new CFO. Following the transition to a new CFO, Ms. Johnson plans to remain with Avago as a consultant. While management turnover is a concern, Moody's does not believe this will have any immediate impact on the company's credit quality. Moody's notes that Ms. Johnson was instrumental in building Avago's financial infrastructure that led to its successful standalone operating history. Implementation of cost reduction initiatives, focus on working capital management and expansion of the asset-lite' strategy have enabled the company to efficiently allocate more resources to R&D programs and improve financial performance. Ms. Johnson's intention to remain as a consultant provides some reassurance that Avago's financial discipline and strategy should not deviate dramatically from current plans. Moody's believes financial strategy, operating efficiency and management stability are key rating factors in the semiconductor industry since they drive product development, return on investment and profitability. Given the highly competitive nature of the industry and the execution intensity of the business, the ability to implement a sound financial strategy is critical for making key long-term strategic R&D investments to pursue new product opportunities and maintain appropriate levels of liquidity in view of the inherently volatile nature of the industry. Moody's will monitor Avago's performance closely while it conducts its search for a new CFO. Signs of management defections or that the management team is becoming distracted, resulting in operating or financial performance weakness, could have a negative impact on the ratings or outlook. Once the new CFO is in place, Moody's will monitor any changes in the company's financial policies and operating results. Headquartered in San Jose, California with principal operations in Singapore, Avago designs, develops, manufactures and sells a broad array of semiconductor components for consumer and commercial electronic applications. Revenues for the twelve months ended Jan. 31, 2008 were $1.6 billion. AXESSTEL INC: Gumbiner Savett Expresses Going Concern Doubt ----------------------------------------------------------- Gumbiner Savett Inc., in Santa Monica, Calif., raised substantial doubt about the ability of Axesstel, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed out that the company has incurred substantial recurring losses from operations, the company's current liabilities exceed its current assets, and the company may not have sufficient working capital or outside financing available to meet its planned operating activities over the next twelve months. Axesstel management stated that commencing in 2007 the company's sales shifted from predominantly Asian countries, where commercial practices use letters of credit, to Latin American countries, where standard commercial terms are open accounts. Its largest account in 2007 was a customer in Venezuela, which does not provide letters of credit and for which we could not obtain credit insurance or secure accounts receivable financing. Accordingly, the company could not borrow against its accounts receivable from this customer to pay its contract manufacturer for costs of goods sold. This problem was compounded when the Venezuelan government's exchange control arm, CADIVI, substantially delayed payments in 2007. The delay in payment caused the company to fall behind in payments to its contract manufacturer, who imposed shipment delays and stopped ordering long lead-time parts in the fourth quarter. By the end of 2007, the company had collected a substantial portion of its accounts receivable. Following the end of the year, it entered into additional arrangements to augment its working capital. However, each of these arrangements is based on borrowing against its accounts receivable. The company finished the year ended Dec. 31, 2007 with cash and cash equivalents of around $555,000, and a negative working capital of $2.9 million. "Currently, our working capital is derived from operations. Our only sources of borrowing are our lines of credit with Wells Fargo Bank, which are secured by that portion of our accounts receivable, which are either credit insured or secured by a letter of credit. We intend to use this working capital financing to continue to fulfill orders for our products. For 2007 our gross margin from product sales was 21% of revenues. We anticipate that gross margin will be in the low twenties for 2008," the management stated. Accordingly, the company is currently relying on gross margin from increased product sales to cover its operating expenses. The company posted a net loss of $9,024,135 on total revenues of $82,435,385 for the year ended Dec. 31, 2007, as compared with a net loss of $6,636,218 on total revenues of $95,519,674 in the prior year. At Dec. 31, 2007, the company's balance sheet showed $29,362,997 in total assets, $28,087,160 in total liabilities and $1,275,837 in stockholders' equity. The company's consolidated balance sheet at Dec. 31, 2007, showed strained liquidity with $25,188,141 in total current assets available to pay $28,087,160 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2a31 About Axesstel Axesstel, Inc., (AMEX: AFT) -- http://www.axesstel.com -- designs, develops, manufactures, and markets fixed wireless voice and broadband data products for the telecommunications markets worldwide. It offers fixed wireless desktop phones, public call office phones, voice/data terminals, fixed and mobile broadband modems, and 3G gateway devices used for voice calling and high- speed data services used in homes, retail locations, businesses, and public transportation and emergency response environments. Axesstel was founded in 2000 and is headquartered in San Diego, California. BANCO INDUSTRIAL: Moody's Puts Ba1 Currency Rating on $130MM Notes ------------------------------------------------------------------ Moody's Investors Service assigned a Ba1 foreign currency rating to Banco Industrial e Comercial S.A.(Cayman Islands)' $130 million senior unsecured notes due April 2010 being issued under the bank's existing $1 billion Global Euro Medium-term Note Program. The rating outlook is stable. Moody's noted that BICBanco's foreign currency debt ratings remain unconstrained by Brazil's foreign currency country ceiling for bonds and notes. Banco Industrial e Comercial S.A. is headquartered in Sao Paulo, Brazil with BRL$11 billion ($6.2 billion) in total assets and BRL$1.6 billion ($882.6 million) in equity as of Dec. 31, 2007. These rating was assigned to BICBanco (Cayman Islands)' $130 million senior notes due 2010: -- Ba1 long-term foreign currency debt, with a stable outlook. BANC OF AMERICA: Fitch Holds 'B' Rating on $6.8MM Class O Certs. ---------------------------------------------------------------- Fitch Ratings upgraded Banc of America Commercial Mortgage Inc.'s commercial mortgage pass-through certificates, series 2002-2, as: -- $19.4 million class H to 'AAA' from 'AA'; -- $21.6 million class J to 'AA' from 'A+'; -- $36.6 million class K to 'A' from 'BBB+'; -- $12.9 million class L to 'BBB+' from 'BBB'. In addition, Fitch affirmed these classes: -- $257.9 million class A-2 at 'AAA'; -- $975.2 million class A-3 at 'AAA'; -- $1.7 billion class XC at 'AAA'; -- $1.5 billion class XP at 'AAA'; -- $64.7 million class B at 'AAA''; -- $17.2 million class C at 'AAA'; -- $12.9 million class D at 'AAA'; -- $17.2 million class E at 'AAA'; -- $21.6 million class F at 'AAA'; -- $21.6 million class G at 'AAA'; -- $12.9 million class M at 'BB+'; -- $16.9 million class N at 'BB-'; -- $6.8 million class O at 'B'. The $34.8 million class P is not rated by Fitch. The rating upgrades reflect stable performance and increased credit enhancement due to the defeasance of 10 loans and scheduled amortization since Fitch's last rating action. As of the March 2008 distribution date, the pool has paid down 10.1%, to $1.55 billion from $1.72 billion at issuance. In total, 58 loans (46.7%) have defeased, including two shadow rated loans, Bank of America Plaza - Atlanta (8.6%) and The Center at Preston Ridge (4.3%). There are five loans in special servicing (2.2%). The largest specially serviced loan is secured by a 201-unit multifamily property located in West Bloomfield, Michigan, which is 90-days delinquent. The servicer is considering workout options, including foreclosure and a possible discounted payoff by the borrower. Losses are expected. Three specially serviced loans (0.5%) are collateralized by multifamily properties located in the Gulf Coast (0.48%) and owned by the same borrower. The loans transferred to the special servicer after the borrower refused to reimburse the master servicer for the force-placed windstorm insurance policy on the properties. The trust is currently in litigation regarding the dispute. The last specially serviced loan was transferred in January 2008 for imminent default. The loan is secured by a 166-unit multifamily property located in Galveston, Texas. The servicer is evaluating workout options. Fitch reviewed the transaction's one non-defeased shadow rated loan, the Crabtree Valley Mall, (10.1%). The mall has 998,486 square feet and is located in Raleigh, North Carolina. The loan maintains its investment grade shadow rating based on stable performance. Occupancy as of December 2007 improved to 95% from 93% in August 2007. BARCLAYS CAPITAL: Securities Paydown Cues S&P to Withdraw Ratings ----------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on the three outstanding classes of Barclays Capital Commercial Real Estate LLC Grantor Trust certificates from Terra LNR 1 Ltd., which were formerly on CreditWatch with developing implications. The withdrawals follow the full paydown of the outstand