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         T R O U B L E D   C O M P A N Y   R E P O R T E R

             Sunday, January 20, 2013, Vol. 17, No. 19

                            Headlines

ALPINE SECURITIZATION: DBRS Confirms 'B' Rating on $72.8MM Loan
AMMC VII: Moody's Upgrades Rating on Class D Notes to 'Ba1'
APIDOS CLO XI: S&P Assigns Prelim. 'BB' Rating to Class E Notes
ARES XX: S&P Retains 'BB' Rating on Class D Notes
ARES XXV: S&P Assigns 'BB' Rating to $24.75MM Class E Notes

ATLAS SENIOR: S&P Affirms 'B' Rating on Class B-3L Notes
BANC OF AMERICA 2005-1: Fitch Puts 4 Certs. on Rating Watch Neg.
BELHURST CLO: S&P Raises Rating on Class E Notes to 'BB+'
C-BASS ABS: Fitch Lowers Ratings on 7 Re-REMIC Classes
CANYON CAPITAL: S&P Assigns 'BB' Rating to $14MM Class E Notes

CENT CDO 10: S&P Raises Rating on Class E Notes to 'BB+'
CHL MORTGAGE 2004-1: Moody's Cuts 2 Note Class Ratings to 'B1'
COLTS 2007-1: Moody's Upgrades Rating on Class E Notes to 'Ba1'
CREDIT SUISSE 2002-CKP1: Moody's Cuts Rating on A-X Certs to Caa3
DRYDEN XVI: S&P Raises Rating on Class D Notes to 'BB+'

ELM BV: S&P Lowers Rating on Series 98 Notes to 'D(sf)'
EMBLEM FINANCE 2: Fitch Cuts Rating on Credit-Linked Notes to 'BB'
FLAGSHIP CLO III: S&P Retains 'BB+' Rating to Class D Notes
GALLATIN CLO II: S&P Affirms 'BB' Rating on Class B-2L Notes
GREYROCK CDO: Moody's Raises Ratings on 2 Note Classes to 'Ba1'

JP MORGAN 2007-LDP10: Fitch Cuts Ratings on 2 Cert. Classes to Csf
KATONAH V: S&P Raises Rating on Class C Notes to CCC+
LANDMARK VII: S&P Raises Rating on Class B-2L Notes to 'B+'
LANDMARK VIII: S&P Affirms 'BB' Rating on Class E Notes
LANDMARK IX: S&P Affirms 'BB' Rating on Class E Notes

MASTR ASSET 2004-WMC2: Moody's Corrects Rating on M-Tranche
MERRILL LYNCH 2005-CA: Moody's Affirms 'Caa2' Rating on L Certs.
MONASTERY 2006-I: S&P Retains 'CCC' Rating on Class D Notes
MORGAN STANLEY 2006-HQ10: Fitch Cuts Rating on D Certs to 'Csf'
ROCK 1-CRE: S&P Affirms 'CCC-' Rating on 2 Note Classes

SANDELMAN FINANCE: Moody's Raises Rating on Cl. D Notes to 'Ba1'
SANTANDER DRIVE 2013-1: Fitch to Rate Class E Notes at 'BBsf'
SANTANDER DRIVE 2013-1: S&P Assigns 'BB+' Rating to Class E Notes
SEQUOIA MORTGAGE 2013-1: Fitch Rates $3.38MM Cl. B-4 Certs 'BBsf'
SHINNECOCK CLO: S&P Raises Rating on Class E Notes to 'BB+'

SPARKS REGIONAL: Moody's Affirms 'B2' Rating on Term Certs.
TARGETED RETURN: S&P Withdraws 'B+' Rating on HY 2006-1 Bonds
TRAPEZA CDO II: S&P Puts 'BB+' Rating on A1B Notes on CreditWatch
WACHOVIA BANK 2004-C15: S&P Cuts Ratings on 2 Note Classes to CCC-

* Fitch Says CMBS Delinquencies Down to 7.99% in December 2012
* Moody's Takes Rating Action on $85-Mil. Prime Jumbo RMBS
* Moody's Cuts Ratings on 11 Tranches From Subprime RMBS
* S&P Lowers Rating on 5 Classes from 3 CMBS Transactions to 'D'
* S&P Takes Action on 16 Classes From Four U.S. CMBS Transactions

* S&P Puts Rating on 42 Tranches From 11 CLO Deals on CreditWatch



                            *********

ALPINE SECURITIZATION: DBRS Confirms 'B' Rating on $72.8MM Loan
---------------------------------------------------------------
DBRS, Inc. has confirmed the rating of R-1 (high) (sf) for the
Commercial Paper ("CP") issued by Alpine Securitization Corp., an
asset-backed commercial paper ("ABCP") vehicle administered by
Credit Suisse, New York branch.  In addition, DBRS has confirmed
the ratings and revised the tranche sizes of the aggregate
liquidity facilities ("the Liquidity") based on the February 29,
2012, reported portfolio provided by Credit Suisse, the
administrator of Alpine.

The $10,386,682,089 aggregate liquidity facilities as of
February 29, 2012, are tranched as follows:

   $10,135,760,623 rated AAA (sf)
   $55,703,776 rated AA (sf)
   $47,560,617 rated A (sf)
   $45,285,934 rated BBB (sf)
   $20,233,257 rated BB (sf)
   $72,893,735 rated B (sf)
   $9,244,147 unrated (sf)

The CP rating reflects the AAA credit quality of Alpine's asset
portfolio.  The updated credit quality aspect of the CP rating is
based on both the portfolio of assets and the available program-
wide credit enhancement ("PWCE").  The rationale for the CP rating
is based on the updated AAA credit quality assessment as well as
DBRS's prior and ongoing review of legal, operational and
liquidity risks associated with Alpine's overall risk profile.

The ratings assigned to the Liquidity reflect the credit quality
of Alpine's asset portfolio based on an analysis that assesses
each transaction to a term standard.  The tranche sizes are
expected to vary each month based on reported changes in portfolio
composition.

For Alpine, both the CP and the Liquidity ratings use DBRS's
simulation methodology, which was developed to analyze diverse
ABCP conduit portfolios.  This analysis uses the DBRS Diversity
Model, with adjustments to reflect the unique structure of an ABCP
conduit and its underlying assets.  DBRS determines attachment
points for risk based on an analysis of the portfolio and models
the portfolio based on key inputs such as asset ratings, asset
tenors and recovery rates.  The attachment points determine the
portion of the exposure rated AAA, AA, A through B, as well as
unrated.

DBRS models the prior (lagged) month(s) portfolio on an ongoing
basis to reflect changes in Alpine's portfolio composition and
credit quality.  The rating results are updated and posted on the
DBRS website.


AMMC VII: Moody's Upgrades Rating on Class D Notes to 'Ba1'
-----------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by AMMC VII, Limited:

U.S. $22,500,000 Class B Floating Rate Notes, Upgraded to Aa1
(sf); previously on August 16, 2012 Upgraded to Aa3 (sf);

U.S. $17,500,000 Class C Deferrable Floating Rate Notes, Upgraded
to A1 (sf); previously on August 16, 2012 Upgraded to A3 (sf);

U.S.$30,000,000 Class D Deferrable Floating Rate Notes, Upgraded
to Ba1 (sf); previously on August 16, 2012 Upgraded to Ba2 (sf);
and

U.S. $15,000,000 Class E Deferrable Floating Rate Notes (current
outstanding balance of 11,237,947), Upgraded to Ba3; previously on
August 16, 2012 Upgraded to B1 (sf).

Ratings Rationale

According to Moody's, the rating actions taken on the notes
reflect the benefit of the short period of time remaining before
the end of the deal's reinvestment period in January 2013. In
consideration of the reinvestment restrictions applicable during
the amortization period, and therefore limited ability to effect
significant changes to the current collateral pool, Moody's
analyzed the deal assuming a higher likelihood that the collateral
pool characteristics will continue to maintain a positive buffer
relative to certain covenant requirements. In particular, the deal
is assumed to benefit from lower WARF and higher spread levels
compared to the levels assumed at the last rating action in August
2011. Moody's modeled a WARF of 2569 and WAS of 3.65% compared to
2897 and 2.96%, respectively, at the time of the last rating
action. Moody's also notes that the transaction's reported
overcollateralization ratios are stable since the last rating
action.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and weighted average recovery rate, may
be different from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of $462 million,
defaulted par of $4.3 million, a weighted average default
probability of 16.97% (implying a WARF of 2569), a weighted
average recovery rate upon default of 50.59%, and a diversity
score of 78. The default and recovery properties of the collateral
pool are incorporated in cash flow model analysis where they are
subject to stresses as a function of the target rating of each CLO
liability being reviewed. The default probability is derived from
the credit quality of the collateral pool and Moody's expectation
of the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. In each case,
historical and market performance trends and collateral manager
latitude for trading the collateral are also factors.

AMMC VII, Limited, issued in December 2006, is a collateralized
loan obligation backed primarily by a portfolio of senior secured
loans.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Approach to Rating Collateralized Loan Obligations"
rating methodology published in June 2011.

In addition to the base case analysis described above, Moody's
also performed sensitivity analyses to test the impact on all
rated notes of various default probabilities. Below is a summary
of the impact of different default probabilities (expressed in
terms of WARF levels) on all rated notes (shown in terms of the
number of notches' difference versus the current model output,
where a positive difference corresponds to lower expected loss),
assuming that all other factors are held equal:

Moody's Adjusted WARF -- 20% (2055)

Class A: 0
Class B: 0
Class C: +3
Class D: +2
Class E: +1

Moody's Adjusted WARF + 20% (3083)

Class A: 0
Class B: -2
Class C: -1
Class D: -1
Class E:0

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of upcoming speculative-grade debt maturities, which
may create challenges for issuers to refinance. CLO notes'
performance may also be impacted by 1) the manager's investment
strategy and behavior and 2) divergence in legal interpretation of
CLO documentation by different transactional parties due to
embedded ambiguities.

Sources of additional performance uncertainties are described
below :

1) Deleveraging: The main source of uncertainty in this
transaction is whether deleveraging from unscheduled principal
proceeds will commence and at what pace. Deleveraging may
accelerate due to high prepayment levels in the loan market and/or
collateral sales by the manager, which may have significant impact
on the notes' ratings.

2) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed defaulted
recoveries assuming the lower of the market price and the recovery
rate in order to account for potential volatility in market
prices.


APIDOS CLO XI: S&P Assigns Prelim. 'BB' Rating to Class E Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
ratings to Apidos CLO XI/Apidos CLO XI LLC's $370.25 million
floating- and fixed-rate notes (see list).

The note issuance is a collateralized loan obligation
securitization backed by a revolving pool consisting primarily of
broadly syndicated senior-secured loans.

The preliminary ratings are based on information as of Jan. 14,
2013.  Subsequent information may result in the assignment of
final ratings that differ from the preliminary ratings.

The preliminary ratings reflect S&P's view of:

  -- The credit enhancement provided to the preliminary rated
notes
     through the subordination of cash flows that are payable to
     the subordinated notes.

  -- The transaction's credit enhancement, which is sufficient to
     withstand the defaults applicable for the supplemental tests
     (not counting excess spread), and cash flow structure, which
     can withstand the default rate projected by Standard & Poor's
     CDO Evaluator model, as assessed by Standard & Poor's using
     the assumptions and methods outlined in its corporate
     collateralized debt obligation criteria (see "Update To
     Global Methodologies And Assumptions For Corporate Cash Flow
     And Synthetic CDOs," published Sept. 17, 2009).

  -- The transaction's legal structure, which is expected to be
     bankruptcy remote.

  -- The diversified collateral portfolio, which primarily
     comprises broadly syndicated speculative-grade senior-secured
     term loans.

  -- The collateral manager's experienced management team.

  -- S&P's projections regarding the timely interest and ultimate
     principal payments on the preliminary rated notes, which S&P
     assessed using its cash flow analysis and assumptions
     commensurate with the assigned preliminary ratings under
     various interest-rate scenarios, including LIBOR ranging from
     0.31%-12.81%.

-- The transaction's overcollateralization and interest coverage
    tests, a failure of which will lead to the diversion of
    interest and principal proceeds to reduce the balance of the
    rated notes outstanding.

-- The transaction's interest diversion test, a failure of which
    will lead to the reclassification of up to 50% of excess
    interest proceeds that are available prior to paying uncapped
    administrative expenses and fees; subordinated collateral
    management fees; collateral manager incentive fees; and
    subordinated note payments into principal proceeds for the
    purchase of additional collateral assets during the
    reinvestment period.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at
http://standardandpoorsdisclosure-17g7.com/1243.pdf.

Preliminary Ratings Assigned

Apidos CLO XI/Apidos CLO XI LLC

Class                    Rating                         Amount
                                                       (mil. $)
A                        AAA (sf)                       263.25
B-1                      AA (sf)                         15.00
B-2                      AA (sf)                         25.00
C (deferrable)           A (sf)                          29.75
D (deferrable)           BBB (sf)                        20.00
E (deferrable)           BB (sf)                         17.25
Subordinated notes       NR                              42.60

NR-Not rated.


ARES XX: S&P Retains 'BB' Rating on Class D Notes
-------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the class
A-1, A-2, A-3b, A-4, B, and C notes from Ares XX CLO Ltd., a
collateralized loan obligation (CLO) transaction.  Simultaneously,
S&P affirmed its ratings on the class A-3a and D notes from the
transaction.  In addition, S&P removed its ratings on the class A-
1, A-2, A-3b, A-4, B, C, and D notes from CreditWatch, where it
placed them on Oct. 29, 2012, with positive implications (see
list).

The transaction was formerly known as Clydesdale CLO 2005 Ltd.,
and the name was changed to Ares XX CLO Ltd. after Ares Management
LLC took over as the manager in April 2012.

Following the end of its reinvestment period in January 2012, the
transaction commenced paying down the notes in the manner
specified in the transaction documents, which allow the class A-3a
notes to receive payments ahead of class A-3b.  As a result, class
A-3a can be paid down in full ahead of the other classes and hence
can support a higher rating.

After the most recent payment date on Oct. 15, 2012, the class A-
1, A-2, and A-3a balances are 64.57%, 64.57%, and 60.56%, of their
original balances, respectively.  All three notes were about 99%
of their original balance in March 2012, when S&P last took a
rating action on the transaction.  The class A-1-3b balance is
still 100% of its original balance.

The lower balances of the notes increased the
overcollateralization (O/C) ratios in the transaction.  The
trustee reports the following O/C ratios in the Dec. 14, 2012,
monthly report:

   -- The class A ratio is 129.96%, up from 121.09% in the
      Feb. 14, 2012, trustee report that S&P used for its March
      2012 analysis;

   -- The class B ratio is 117.71%, compared with 113.15% in
       February 2012;

   -- The class C ratio is 110.45%, compared with 108.21% in
       February 2012; and

   -- The class D ratio is 106.42%, compared with 105.38% in
       February 2012.

In addition, the transaction's defaults have decreased to
$2.4 million from $8.4 million in February 2012.  The
transaction's credit quality has also improved during this period.

The upgrades reflect the increased credit support to the notes at
the prior rating levels.  The affirmations reflect the
availability of adequate credit support at the current rating
levels.

S&P will continue to review whether it considers the ratings on
the notes to be consistent with the credit enhancement available
to support them, and S&P will take rating actions as it deem
necessary.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

Ares XX CLO Ltd.

Class     To            From
A-1       AAA (sf)    AA+ (sf)/Watch Pos
A-2       AAA (sf)    AA+ (sf)/Watch Pos
A-3a      AAA (sf)    AAA
A-3b      AAA (sf)    AA+ (sf)/Watch Pos
A-4       AAA (sf)    AA (sf)/Watch Pos
B         AA+ (sf)    A (sf)/Watch Pos
C         A- (sf)     BBB (sf)/Watch Pos
D         BB (sf)     BB (sf)/Watch Pos


ARES XXV: S&P Assigns 'BB' Rating to $24.75MM Class E Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its ratings to Ares
XXV CLO Ltd./Ares XXV CLO LLC's $507.25 million fixed- and
floating-rate notes.

The note issuance is a collateralized loan obligation
securitization backed by a revolving pool consisting primarily of
broadly syndicated senior secured loans.

The ratings reflect S&P's view of:

-- The credit enhancement provided to the rated notes through the
    subordination of cash flows that are payable to the
    subordinated notes.

-- The transaction's credit enhancement, which is sufficient to
    withstand the defaults applicable for the supplemental tests
    (not counting excess spread), and cash flow structure, which
    can withstand the default rate projected by Standard & Poor's
    CDO Evaluator model, as assessed by Standard & Poor's using
    the assumptions and methods outlined in its corporate
    collateralized debt obligation (CDO) criteria (see "Update To
    Global Methodologies And Assumptions For Corporate Cash Flow
    And Synthetic CDOs," published Sept. 17, 2009).

-- The transaction's legal structure, which is expected to be
    bankruptcy remote.

-- The diversified collateral portfolio, which consists
    primarily of broadly syndicated speculative-grade senior
    secured term loans.

-- The asset manager's experienced management team.

-- S&P's projections regarding the timely interest and ultimate
    principal payments on the rated notes, which it assessed using
    its cash flow analysis and assumptions commensurate with the
    assigned ratings under various interest-rate scenarios,
    including LIBOR ranging from 0.3100%-12.5332%.

-- The transaction's overcollateralization and interest coverage
    tests, a failure of which will lead to the diversion of
    interest and principal proceeds to reduce the balance of the
    rated notes outstanding.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:

      http://standardandpoorsdisclosure-17g7.com/1143.pdf

RATINGS ASSIGNED

Ares XXV CLO Ltd./Ares XXV CLO LLC

Class                    Rating                         Amount
                                                      (mil. $)
A                        AAA (sf)                       339.50
B-1                      AA (sf)                         45.00
B-2                      AA (sf)                         23.75
C (deferrable)           A (sf)                          45.25
D (deferrable)           BBB (sf)                        29.00
E (deferrable)           BB (sf)                         24.75
Subordinated notes       NR                              60.25

NR-Not rated.


ATLAS SENIOR: S&P Affirms 'B' Rating on Class B-3L Notes
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on Atlas
Senior Loan Fund Ltd./Atlas Senior Loan Fund LLC 's $382 million
floating-rate notes following the transaction's effective date as
of Aug. 22, 2012.

Most U.S. cash flow collateralized debt obligations (CLOs) close
before purchasing the full amount of their targeted level of
portfolio collateral.  On the closing date, the collateral manager
typically covenants to purchase the remaining collateral within
the guidelines specified in the transaction documents to reach the
target level of portfolio collateral.  Typically, the CLO
transaction documents specify a date by which the targeted level
of portfolio collateral must be reached.  The "effective date" for
a CLO transaction is usually the earlier of the date on which the
transaction acquires the target level of portfolio collateral, or
the date defined in the transaction documents.  Most transaction
documents contain provisions directing the trustee to request the
rating agencies that have issued ratings upon closing to affirm
the ratings issued on the closing date after reviewing the
effective date portfolio (typically referred to as an "effective
date rating affirmation").

"An effective date rating affirmation reflects our opinion that
the portfolio collateral purchased by the issuer, as reported to
us by the trustee and collateral manager, in combination with the
transaction's structure, provides sufficient credit support to
maintain the ratings that we assigned on the transaction's closing
date.  The effective date reports provide a summary of certain
information that we used in our analysis and the results of our
review based on the information presented to us," S&P said.

"We believe the transaction may see some benefit from allowing a
window of time after the closing date for the collateral manager
to acquire the remaining assets for a CLO transaction.  This
window of time is typically referred to as a "ramp-up period."
Because some CLO transactions may acquire most of their assets
from the new issue leveraged loan market, the ramp-up period may
give collateral managers the flexibility to acquire a more diverse
portfolio of assets," S&P said.

For a CLO that has not purchased its full target level of
portfolio collateral by the closing date, our ratings on the
closing date and prior to our effective date review are generally
based on the application of our criteria to a combination of
purchased collateral, collateral committed to be purchased, and
the indicative portfolio of assets provided to us by the
collateral manager, and may also reflect our assumptions about the
transaction's investment guidelines.  This is because not all
assets in the portfolio have been purchased.

"When we receive a request to issue an effective date rating
affirmation, we perform quantitative and qualitative analysis of
the transaction in accordance with our criteria to assess whether
the initial ratings remain consistent with the credit enhancement
based on the effective date collateral portfolio.  Our analysis
relies on the use of CDO Evaluator to estimate a scenario default
rate at each rating level based on the effective date portfolio,
full cash flow modeling to determine the appropriate percentile
break-even default rate at each rating level, the application of
our supplemental tests, and the analytical judgment of a rating
committee. (For more information on our criteria and our
analytical tools, see "Update To Global Methodologies And
Assumptions For Corporate Cash Flow And Synthetic CDOs," published
Sept. 17, 2009.)," S&P added

"In our published effective date report, we discuss our analysis
of the information provided by the transaction's trustee and
collateral manager in support of their request for effective date
rating affirmation.  In most instances, we intend to publish an
effective date report each time we issue an effective date rating
affirmation on a publicly rated U.S. cash flow CLO," S&P noted.

"On an ongoing basis after we issue an effective date rating
affirmation, we will periodically review whether, in our view, the
current ratings on the notes remain consistent with the credit
quality of the assets, the credit enhancement available to support
the notes, and other factors, and take rating actions as we deem
necessary," S&P noted.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

RATINGS AFFIRMED

Atlas Senior Loan Fund Ltd./Atlas Senior Loan Fund LLC

Class                           Rating         Amount (mil. $)
A-1L                            AAA (sf)           191.00
A-2L                            AA (sf)             25.00
A-3F (deferrable)               A (sf)              10.00
A-3L (deferrable)               A (sf)              15.00
B-1L (deferrable)               BBB (sf)            15.00
B-2L (deferrable)               BB- (sf)            16.25
B-3L (deferrable)               B (sf)               7.00
Subordinated notes              NR                   29.00

NR-Not rated.


BANC OF AMERICA 2005-1: Fitch Puts 4 Certs. on Rating Watch Neg.
----------------------------------------------------------------
Fitch Ratings has placed four classes of Banc of America
Commercial Mortgage Inc., commercial mortgage pass-through
certificates, series 2005-1 on Rating Watch Negative.

The Negative Watch reflects continued concerns surrounding the
loans in special servicing, most notably the January 2013 transfer
of the second largest loan in the pool, The Mall at Stonecrest
(7.5%). The loan was recently transferred to special servicing due
to Imminent Default after the borrower notified the servicer the
income was insufficient to service the debt and various reserves.
The net operating income (NOI) has declined as a result of
decreasing rents and the drop in occupancy to 78% from 89% in
2010.

Fitch expects to resolve the Rating Watch status within the next
several months following a complete review of the transaction
including updated valuation details and collateral/workout
discussions with the loan servicers.

Fitch places the following classes on Rating Watch Negative:

  -- $168.4 million class A-J 'AAAsf';
  -- $61 million class B 'AAsf';
  -- $20.3 million class C 'Asf';
  -- $43.5 million class D 'Bsf'.


BELHURST CLO: S&P Raises Rating on Class E Notes to 'BB+'
---------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the class
B, C, D, and E notes from Belhurst CLO Ltd. and removed them from
CreditWatch with positive implications, where S&P placed them in
October 2012 (see list).  Belhurst CLO Ltd. is a collateralized
loan obligation (CLO) transaction managed by INVESCO Senior
Secured Management Inc. that closed in March 2006.

The transaction's reinvestment period ended in January 2012.
Since that time, the class A-1, A-2, and A-3 notes have combined
to pay down more than $53.3 million in principal.  The upgrades
reflect these pro rata paydowns and the improved credit quality of
the transaction's underlying asset portfolio since S&P's February
2011 rating actions.  S&P also notes that the amount of 'CCC'
rated obligations held in the portfolio has decreased over the
same period.  As a result, the class A, B, C, and D
overcollateralization (O/C) ratios have increased.

The principal protected notes are backed by an interest only strip
from a senior unsecured bond issued by Fannie Mae, a U.S.
government-related entity, whose ratings is linked to that of the
sovereign rating on the U.S.

The affirmations reflect the sufficient credit support available
to the notes at the current rating levels.

Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions as it deems necessary.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

Belhurst CLO Ltd.
                       Rating

Class               To           From
B                   AA+ (sf)     AA (sf)/Watch Pos
C                   A+ (sf)      BBB+ (sf)/Watch Pos
D                   BBB+ (sf)    BBB (sf)/Watch Pos
E                   BB+ (sf)     B+ (sf)/Watch Pos

RATINGS AFFIRMED

Belhurst CLO Ltd.

Class               Rating
A-1                 AA+ (sf)
A-2                 AA+ (sf)
A-3                 AA+ (sf)
Principal protected AA+ (sf)


C-BASS ABS: Fitch Lowers Ratings on 7 Re-REMIC Classes
------------------------------------------------------
Fitch Ratings has downgraded seven and affirmed four classes of
one C-Bass RMBS resecuritization trust (Re-REMIC). This Re-REMIC
is collateralized with underlying scratch and dent, subprime and
prime transactions from the 1990-1998 vintages.

Fitch's rating actions are:

C-Bass ABS, L.L.C 1999-3:

   -- Class A (CUSIP 124860CB1) downgraded to 'CCCsf/RE75%'
      from 'Bsf'; removed from Rating Watch Negative;

   -- Class M1 (CUSIP 124860CC9) downgraded to 'CCsf/RE30%'
      from 'CCCsf/RE65%';

   -- Class M2 (CUSIP 124860CD7) downgraded to 'CCsf/RE25%'
      from 'CCCsf/RE60%';

   -- Class M3 (CUSIP 124860CE5) downgraded to 'CCsf/RE25%'
      from 'CCCsf/RE60%';

   -- Class M4 (CUSIP 124860CF2) downgraded to 'CCsf/RE25%
      from 'CCCsf/RE55%';

   -- Class M5 (CUSIP 124860CG0) downgraded to 'CCsf/RE20%'
      from 'CCCsf/RE55%';

   -- Class B1 (CUSIP 124860CH8) downgraded to 'Csf/RE15%
      from 'CCsf/RE40%';

   -- Class B2 (CUSIP 124860CJ4) affirmed at 'Csf/RE10%';

   -- Class B3 (CUSIP 124860CK1) affirmed at 'Dsf/RE10%';

   -- Class B4 (CUSIP 124860CL9) affirmed at 'Dsf/RE0%';

   -- Class B5 (CUSIP 124860CM7) affirmed at 'Dsf/RE0%'.

The Re-REMIC rating actions reflect revised expected loss
assumptions from Fitch's recently released prime and non-prime
loan loss models as well as recently enhanced cash flow
assumptions.

Fitch ran cash flow analysis on the Re-REMIC to determine the
percent of principal and interest recovery in the 'Bsf-AAAsf'
rating stresses. For Fitch rated underlying transactions, the same
projected base-case and rating-stressed loss and cash flow
assumptions that were used for the underlying transaction analysis
were used for the Re-REMIC analysis. For underlying transactions
that were not rated by Fitch, Fitch projected the base-case and
rating-stressed loss and cash flow assumptions using sector and
vintage average assumptions. In addition, Fitch assumed 100%
expected loss on all underlying transactions with less than five
remaining loans. For further information on the analysis that was
run on the underlying transactions please refer to the applicable
criteria and related research listed below.

Following a review of Re-REMIC cash flows, Fitch either affirmed
or downgraded the Re-REMIC classes based on each bond's principal
and interest recovery in the 'Bsf-AAAsf' stressed scenarios.


CANYON CAPITAL: S&P Assigns 'BB' Rating to $14MM Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its ratings to Canyon
Capital CLO 2012-1 Ltd./Canyon Capital CLO 2012-1 LLC's
$304.00 million floating-rate notes.

The note issuance is collateralized loan obligation securitization
backed by a revolving pool consisting primarily of broadly
syndicated senior secured loans.

The ratings reflect S&P's view of:

-- The credit enhancement provided to the rated notes through the
    subordination of cash flows that are payable to the
    subordinated notes.

-- The transaction's credit enhancement, which is sufficient to
    withstand the defaults applicable for the supplemental tests
    (not counting excess spread), and cash flow structure, which
    can withstand the default rate projected by Standard & Poor's
    CDO Evaluator model, as assessed by Standard & Poor's using
    the assumptions and methods outlined in its corporate
    collateralized debt obligation (CDO) criteria (see "Update To
    Global Methodologies And Assumptions For Corporate Cash Flow
    And Synthetic CDOs," published Sept. 17, 2009).

-- The transaction's legal structure, which is expected to be
    bankruptcy remote.

-- The diversified collateral portfolio, which consists primarily
    of broadly syndicated speculative-grade senior secured term
    loans.

-- The collateral manager's experienced management team.

-- S&P's projections regarding the timely interest and ultimate
    principal payments on the rated notes, which S&P assessed
    using its cash flow analysis and assumptions commensurate with
    the assigned ratings under various interest-rate scenarios,
    including LIBOR ranging from 0.3105%-12.5967%.

-- The transaction's overcollateralization and interest coverage
    tests, a failure of which will lead to the diversion of
    interest and principal proceeds to reduce the balance of the
    rated notes outstanding.

         STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at
http://standardandpoorsdisclosure-17g7.com/1232.pdf.

RATINGS ASSIGNED

Canyon Capital CLO 2012-1 Ltd./Canyon Capital CLO 2012-1 LLC

Class                      Rating           Amount
                                          (mil. $)
X                          AAA (sf)           3.00
A                          AAA (sf)         200.00
B-1                        AA (sf)           41.00
B-2                        AA (sf)            7.50
C (deferrable)             A (sf)            24.00
D (deferrable)             BBB (sf)          14.50
E (deferrable)             BB (sf)           14.00
Subordinated notes         NR                37.50

NR-Not rated.


CENT CDO 10: S&P Raises Rating on Class E Notes to 'BB+'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its ratings
on five classes of notes from Cent CDO 10 Ltd., a cash flow
collateralized loan obligation (CLO) transaction and removed the
classes from CreditWatch with positive implications, where it had
placed them on October 29, 2012.

This transaction is currently in its amortization phase since the
reinvestment period ended in December 2011.  The upgrades reflect
a partial paydown of $73.4 million to the class A-1 notes since
S&P's March 2012 rating actions.  Because of this and other
factors, overcollateralization (O/C) ratios increased for the
senior and mezzanine notes.

The transaction has exposure to long-dated assets (i.e., assets
maturing after the stated maturity of the CLO).  S&P's analysis
accounted for the potential market value and/or settlement related
risk arising from the potential liquidation of the remaining
securities on the legal final maturity date of the transaction.

"We will continue to review whether the ratings currently assigned
to the notes remain consistent with the credit enhancement
available to support them and take rating actions as it deems
necessary," S&P said.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING AND CREDITWATCH ACTIONS

Cent CDO 10 Ltd.

                Rating
Class        To         From

A-1          AAA (sf)   AA+ (sf)/Watch Pos
B            AA+ (sf)   A+ (sf)/Watch Pos
C            A+ (sf)    BBB+ (sf)/Watch Pos
D            BBB- (sf)  BB (sf)/Watch Pos
E            BB+ (sf)   B+ (sf)/Watch Pos


CHL MORTGAGE 2004-1: Moody's Cuts 2 Note Class Ratings to 'B1'
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of five
tranches from one RMBS transaction backed by Prime loans, and
issued by CHL Mortgage Pass-Through Trust 2004-1.

Complete rating actions are as follows:

Issuer: CHL Mortgage Pass-Through Trust 2004-1

Cl. A-1, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Confirmed at Baa2 (sf)

Cl. A-3, Downgraded to Ba3 (sf); previously on Apr 19, 2011
Downgraded to Baa1 (sf)

Cl. A-4, Downgraded to B1 (sf); previously on Apr 13, 2012
Confirmed at Baa2 (sf)

Cl. A-5, Downgraded to B1 (sf); previously on Apr 13, 2012
Confirmed at Baa2 (sf)

Cl. PO, Downgraded to B1 (sf); previously on Apr 19, 2011
Downgraded to Baa2 (sf)

Ratings Rationale

The actions are a result of the recent performance of the
underlying pool and reflect Moody's updated loss expectations on
the pool. The performance of the underlying pool has steadily
deteriorated with serious delinquencies (60+ delinquencies
including loans in REO and Foreclosure) as a percentage of current
pool balance, having increased to 11% in Nov 2012 from 4.2% in Dec
2011. The downgrades are a result of deteriorating performance and
structural features resulting in higher expected losses for the
bonds than previously anticipated.

The methodologies used in this rating were "Moody's Approach to
Rating US Residential Mortgage-Backed Securities" published in
December 2008, and "Pre-2005 US RMBS Surveillance Methodology"
published in January 2012. The methodology used in rating
interest-only securities was "Moody's Approach to Rating
Structured Finance Interest-Only Securities" published in February
2012.

Moody's adjusts the methodologies noted above for 1) Moody's
current view on loan modifications and 2) small pool volatility

Loan Modifications

As a result of an extension of the Home Affordable Modification
Program (HAMP) to 2013 and an increased use of private
modifications, Moody's is extending its previous view that loan
modifications will only occur through the end of 2012. It is now
assuming that the loan modifications will continue at current
levels until the end of 2013.

Small Pool Volatility

To project losses on prime jumbo pools with fewer than 100 loans,
Moody's first calculates an annualized delinquency rate based on
vintage, number of loans remaining in the pool and the level of
current delinquencies in the pool. For prime jumbo pools
originated before 2005, Moody's first applies a baseline
delinquency rate of 3.0%. Once the loan count in a pool falls
below 76, this rate of delinquency is increased by 1% for every
loan fewer than 76. For example, for a pool with 75 loans, the
adjusted rate of new delinquency would be 3.03%. In addition, if
current delinquency levels in a small pool is low, future
delinquencies are expected to reflect this trend. To account for
that, the rate calculated above is multiplied by a factor ranging
from 0.75 to 2.5 for current delinquencies ranging from less than
2.5% to greater than 10% respectively. Delinquencies for
subsequent years and ultimate expected losses are projected using
the approach described in the methodology publication.

The primary source of assumption uncertainty is the uncertainty in
Moody's central macroeconomic forecast and performance volatility
due to servicer-related issues. The unemployment rate fell from
9.0% in September 2011 to 7.7% in November 2012. Moody's forecasts
a further drop to 7.5% by 2014. Moody's expects house prices to
drop another 1% from their 4Q2011 levels before gradually rising
towards the end of 2013. Performance of RMBS continues to remain
highly dependent on servicer procedures. Any change resulting from
servicing transfers or other policy or regulatory change can
impact the performance of these transactions.

A list of the review actions associated with this announcement may
be found at:

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF312645

A list of updated estimated pool losses, sensitivity analysis, and
tranche recovery details is being posted on an ongoing basis for
the duration of this review period and may be found at:

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF243269


COLTS 2007-1: Moody's Upgrades Rating on Class E Notes to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by CoLTS 2007-1:

  U.S.$40,000,000 Class C Floating Rate Deferrable Interest Notes
  Due 2021, Upgraded to Aaa (sf); previously on April 19, 2012
  Upgraded to Aa1 (sf)

  U.S.$21,215,000 Class D Floating Rate Deferrable Interest Notes
  Due 2021, Upgraded to Aa3 (sf); previously on April 19, 2012
  Upgraded to A3 (sf)

  U.S.$22,250,000 Class E Floating Rate Deferrable Interest Notes
  Due 2021, Upgraded to Ba1 (sf); previously on November 6, 2011
  Upgraded to Ba2 (sf)

  U.S.$10,000,000 Combination Notes Due 2021 (current rated
  balance of $5,841,004), Upgraded to A1 (sf); previously on April
  19, 2012 Upgraded to Baa3 (sf)

Moody's also affirmed the ratings of the following notes:

  U.S.$260,000,000 Class A Floating Rate Notes Due 2021 (current
  outstanding balance of $82,102,655), Affirmed Aaa (sf);
  previously on March 15, 2007 Assigned Aaa (sf)

  U.S.$22,250,000 Class B Floating Rate Notes Due 2021, Affirmed
  Aaa (sf); previously on November 6, 2011 Upgraded to Aaa (sf)

Ratings Rationale

According to Moody's, the rating actions taken on the notes are
primarily a result of deleveraging of the senior notes and an
increase in the transaction's overcollateralization ratios since
the rating action in April 2012. Moody's notes that the Class A
Notes have been paid down by approximately 49% or $77.7 million
since the last rating action. Based on the latest trustee report
dated December 5, 2012, the Class A/B, Class C, Class D and Class
E overcollateralization ratios are reported at 180.0%, 137.9%,
122.7% and 110.0%, respectively, versus March 2012 levels of
157.1%, 128.8%, 117.6% and 107.7%, respectively. Moody's notes the
reported December overcollateralization ratios do not reflect the
December 20, 2012 payment of $26.7 million to the Class A Notes.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and weighted average recovery rate, may
be different from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of $207.8 million,
defaulted par of $16.9 million, a weighted average default
probability of 21.30% (implying a WARF of 3411), a weighted
average recovery rate upon default of 49.94%, and a diversity
score of 38. The default and recovery properties of the collateral
pool are incorporated in cash flow model analysis where they are
subject to stresses as a function of the target rating of each CLO
liability being reviewed. The default probability is derived from
the credit quality of the collateral pool and Moody's expectation
of the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. In each case,
historical and market performance trends and collateral manager
latitude for trading the collateral are also factors.

CoLTS 2007-1 Ltd., issued in February 2007, is a collateralized
loan obligation backed by a portfolio of senior secured loans,
with significant exposure to middle market loans.

The methodologies used in this rating were "Moody's Approach to
Rating Collateralized Loan Obligations" published in June 2011 and
"Using the Structured Note Methodology to Rate CDO Combo-Notes"
published in February 2004.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Approach to Rating Collateralized Loan Obligations"
rating methodology published in June 2011.

For securities whose default probabilities are assessed through
credit estimates ("CEs"), Moody's applied additional default
probability adjustments. For each CE where the related exposure
constitutes more than 3% of the collateral pool, Moody's applied a
2-notch equivalent assumed downgrade (but only on the CEs
representing in aggregate the largest 30% of the pool) as
described in Moody's Ratings Implementation Guidance "Updated
Approach to the Usage of Credit Estimates in Rated Transactions",
October 2009. Moody's applied this 2-notch adjustment to 11% of
the underlying portfolio.

In addition to the base case analysis described above, Moody's
also performed sensitivity analyses to test the impact on all
rated notes of various default probabilities. Below is a summary
of the impact of different default probabilities (expressed in
terms of WARF levels) on all rated notes (shown in terms of the
number of notches' difference versus the current model output,
where a positive difference corresponds to lower expected loss),
assuming that all other factors are held equal:

Moody's Adjusted WARF -- 20% (2729)

Class A: 0
Class B: 0
Class C: 0
Class D: +2
Class E: +1
Combination Notes: +1

Moody's Adjusted WARF + 20% (4094)

Class A: 0
Class B: 0
Class C: 0
Class D: -2
Class E: -1
Combination Notes: -1

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of upcoming speculative-grade debt maturities which
may create challenges for issuers to refinance. CLO notes'
performance may also be impacted by 1) the manager's investment
strategy and behavior and 2) divergence in legal interpretation of
CLO documentation by different transactional parties due to
embedded ambiguities.

Sources of additional performance uncertainties are described
below:

1) Deleveraging: The main source of uncertainty in this
transaction is whether deleveraging from unscheduled principal
proceeds will continue and at what pace. Deleveraging may
accelerate due to high prepayment levels in the loan market and
collateral sales by the manager, which may have significant impact
on the notes' ratings.

2) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed defaulted
recoveries assuming the lower of the market price and the recovery
rate in order to account for potential volatility in market
prices.

3) Exposure to credit estimates: The deal is exposed to a large
number of securities whose default probabilities are assessed
through credit estimates. In the event that Moody's is not
provided the necessary information to update the credit estimates
in a timely fashion, the transaction may be impacted by any
default probability adjustments Moody's may assume in lieu of
updated credit estimates. Moody's also conducted tests to assess
the collateral pool's concentration risk in obligors bearing a
credit estimate that constitute more than 3% of the collateral
pool.


CREDIT SUISSE 2002-CKP1: Moody's Cuts Rating on A-X Certs to Caa3
-----------------------------------------------------------------
Moody's Investors Service affirmes the ratings of four classes and
downgrades one class of Credit Suisse First Boston Commercial
Mortgage Corp., Commercial Mortgage Pass-Through Certificates,
Series 2002-CKP1 as follows:

Cl. G, Affirmed at Baa2 (sf); previously on Mar 18, 2010
Downgraded to Baa2 (sf)

Cl. H, Affirmed at Ba2 (sf); previously on Mar 18, 2010 Downgraded
to Ba2 (sf)

Cl. K-Z, Affirmed at Caa2 (sf); previously on Feb 3, 2011
Downgraded to Caa2 (sf)

Cl. L, Affirmed at C (sf); previously on Jan 6, 2012 Downgraded to
C (sf)

Cl. A-X, Downgraded to Caa3 (sf); previously on Feb 22, 2012
Downgraded to Caa1 (sf)

RATINGS RATIONALE

The affirmations of the principal classes are due to key
parameters, including Moody's loan to value (LTV) ratio, Moody's
stressed debt service coverage ratio (DSCR) and the Herfindahl
Index (Herf), remaining within acceptable ranges. Based on Moody's
current base expected loss, the credit enhancement levels for the
affirmed classes are sufficient to maintain their current ratings.

The downgrade of the IO Class, Class A-X reflects the credit
performance of its referenced classes following the paydown of
higher rated reference bonds.

Moody's rating action reflects a base expected loss of 13.4% of
the current balance. At last review, Moody's base expected loss
was 11.9%. Realized losses have increased from 5.2% of the
original balance to 6.0% since the prior review. Moody's provides
a current list of base expected losses for conduit and fusion CMBS
transactions on moodys.com at
http://v3.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255
Depending on the timing of loan payoffs and the severity and
timing of losses from specially serviced loans, the credit
enhancement level for investment grade classes could decline below
the current levels. If future performance materially declines, the
expected level of credit enhancement and the priority in the cash
flow waterfall may be insufficient for the current ratings of
these classes.

The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. From time to time, Moody's may, if warranted, change
these expectations. Performance that falls outside the given range
may indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. The
decision to take (or not take) a rating action is dependent on an
assessment of a range of factors including, but not exclusively,
the performance metrics.

Primary sources of assumption uncertainty are the extent of growth
in the current macroeconomic environment given the weak pace of
recovery and commercial real estate property markets. Commercial
real estate property values are continuing to move in a modestly
positive direction along with a rise in investment activity and
stabilization in core property type performance. Limited new
construction and moderate job growth have aided this improvement.
However, a consistent upward trend will not be evident until the
volume of investment activity steadily increases for a significant
period, non-performing properties are cleared from the pipeline,
and fears of a Euro area recession are abated.

The hotel sector is performing strongly with nine straight
quarters of growth and the multifamily sector continues to show
increases in demand with a growing renter base and declining home
ownership. Recovery in the office sector continues at a measured
pace with minimal additions to supply. However, office demand is
closely tied to employment, where growth remains slow and
employers are considering decreases in the leased space per
employee. Also, primary urban markets are outperforming secondary
suburban markets. Performance in the retail sector continues to be
mixed with retail rents declining for the past four years, weak
demand for new space and lackluster sales driven by internet sales
growth. Across all property sectors, the availability of debt
capital continues to improve with robust securitization activity
of commercial real estate loans supported by a monetary policy of
low interest rates.

Moody's central global macroeconomic scenario is for continued
below-trend growth in US GDP over the near term, with consumer
spending remaining soft in the US. Hurricane Sandy may skew near-
term economic data but is unlikely to have any long-term
macroeconomic effects. Primary downside risks include: a deeper
than expected recession in the euro area accompanied by deeper
credit contraction; the potential for a hard landing in major
emerging markets, including China, India and Brazil; an oil supply
shock; albeit abated in recent months; and given recent political
gridlock, excessive fiscal tightening in the US in 2013 leading
the US into recession. However, the Federal Reserve has shown
signs of support for activity by continuing with quantitative
easing.

The methodologies used in this rating were "Moody's Approach to
Rating U.S. CMBS Conduit Transactions" published in September
2000, "Moody's Approach to Rating Structured Finance Interest-Only
Securities" published in February 2012 and "Moody's Approach to
Rating CMBS Large Loan/Single Borrower Transactions" published in
July 2000.

Moody's review incorporated the use of the excel-based CMBS
Conduit Model v 2.61 which is used for both conduit and fusion
transactions. Conduit model results at the Aa2 (sf) level are
driven by property type, Moody's actual and stressed DSCR, and
Moody's property quality grade (which reflects the capitalization
rate used by Moody's to estimate Moody's value). Conduit model
results at the B2 (sf) level are driven by a paydown analysis
based on the individual loan level Moody's LTV ratio. Moody's
Herfindahl score (Herf), a measure of loan level diversity, is a
primary determinant of pool level diversity and has a greater
impact on senior certificates. Other concentrations and
correlations may be considered in Moody's analysis. Based on the
model pooled credit enhancement levels at Aa2 (sf) and B2 (sf),
the remaining conduit classes are either interpolated between
these two data points or determined based on a multiple or ratio
of either of these two data points. For fusion deals, the credit
enhancement for loans with investment-grade credit assessments is
melded with the conduit model credit enhancement into an overall
model result. Fusion loan credit enhancement is based on the
credit assessment of the loan which corresponds to a range of
credit enhancement levels. Actual fusion credit enhancement levels
are selected based on loan level diversity, pool leverage and
other concentrations and correlations within the pool. Negative
pooling, or adding credit enhancement at the credit assessment
level, is incorporated for loans with similar credit assessments
in the same transaction.

Moody's review also incorporated the CMBS IO calculator ver1.1,
which uses the following inputs to calculate the proposed IO
rating based on the published methodology: original and current
bond ratings and credit assessments; original and current bond
balances grossed up for losses for all bonds the IO(s)
reference(s) within the transaction; and IO type as defined in the
published methodology. The calculator then returns a calculated IO
rating based on both a target and mid-point. For example, a target
rating basis for a Baa3 (sf) rating is a 610 rating factor. The
midpoint rating basis for a Baa3 (sf) rating is 775 (i.e. the
simple average of a Baa3 (sf) rating factor of 610 and a Ba1 (sf)
rating factor of 940). If the calculated IO rating factor is 700,
the CMBS IO calculator ver1.1 would provide both a Baa3 (sf) and
Ba1 (sf) IO indication for consideration by the rating committee.

Moody's uses a variation of Herf to measure diversity of loan
size, where a higher number represents greater diversity. Loan
concentration has an important bearing on potential rating
volatility, including risk of multiple notch downgrades under
adverse circumstances. The credit neutral Herf score is 40. The
pool has a Herf of 7 compared to 19 at Moody's prior review.

In cases where the Herf falls below 20, Moody's also employs the
large loan/single borrower methodology. This methodology uses the
excel-based Large Loan Model v 8.5 and then reconciles and weights
the results from the two models in formulating a rating
recommendation. The large loan model derives credit enhancement
levels based on an aggregation of adjusted loan level proceeds
derived from Moody's loan level LTV ratios. Major adjustments to
determining proceeds include leverage, loan structure, property
type, and sponsorship. These aggregated proceeds are then further
adjusted for any pooling benefits associated with loan level
diversity, other concentrations and correlations.

Moody's ratings are determined by a committee process that
considers both quantitative and qualitative factors. Therefore,
the rating outcome may differ from the model output.

The rating action is a result of Moody's on-going surveillance of
commercial mortgage backed securities (CMBS) transactions. Moody's
monitors transactions on a monthly basis through a review
utilizing MOST(R) (Moody's Surveillance Trends) Reports and a
proprietary program that highlights significant credit changes
that have occurred in the last month as well as cumulative changes
since the last full transaction review. On a periodic basis,
Moody's also performs a full transaction review that involves a
rating committee and a press release. Moody's prior transaction
review is summarized in a press release dated
January 6, 2012.

DEAL PERFORMANCE

As of the December 17, 2012 distribution date, the transaction's
aggregate certificate balance has decreased by 95% to $50.2
million from $992.9 million at securitization. The Certificates
are collateralized by 15 mortgage loans ranging in size from less
than 1% to 28% of the pool, with the top ten non-defeased loans
representing 86% of the pool. One loan, representing 8% of the
pool, has defeased and is secured by U.S. Government securities.

Four loans, representing 35% of the pool, are on the master
servicer's watchlist. The watchlist includes loans which meet
certain portfolio review guidelines established as part of the CRE
Finance Council (CREFC) monthly reporting package. As part of
Moody's ongoing monitoring of a transaction, Moody's reviews the
watchlist to assess which loans have material issues that could
impact performance.

Thirty-three loans have been liquidated from the pool, resulting
in an aggregate realized loss of $59.5 million (38% loss severity
on average). Six loans, representing 37% of the pool, are
currently in special servicing. The largest specially serviced
loan is the Tower Office Plaza 1 ($6.7 million -- 13.3% of the
pool), which is secured by a 72,000 square foot (SF) office
building located in Temecula, California. The loan transferred to
special servicing in January 2011 due to maturity default. A
receivership application was filed followed by the borrower filing
for Chapter 11 Bankruptcy in July 2011. A foreclosure was filed in
July 2012 and the sale has not been scheduled. The special
servicer indicated that they are still going through the
bankruptcy process with the borrower.

The second largest specially serviced loan is the North Port
Shopping Center Loan ($3.9 million -- 7.7% of the pool), which is
secured by a 67,000 SF retail property located in Port Washington,
Wisconsin. The loan matured in August 2011 and became real estate
owned (REO) in August 2012. The two largest tenants include Sentry
Foods (70% of the NRA; lease expiration July 2014) and Lakeshore
Vet (7% NRA; lease expiration March 2013).

The third largest specially serviced loan is the Highland Business
Center I and II Loan (3.2 million -- 6.4% of the pool), which is
secured by a 68,000 SF office property located in Temecula,
California. The loan transferred in January 2012 due to maturity
default. A receivership application was filed followed by the
borrower filing for Chapter 11 Bankruptcy in July 2012. A
projected foreclosure sale date has not been scheduled. The
special servicer indicated that they are still going through the
bankruptcy process with the borrower.

The remaining three specially serviced loans are secured by two
multifamily properties and one mixed use property. Moody's
estimates an aggregate $4.9 million loss for the specially
serviced loans (27% expected loss on average).

Moody's was provided with full year 2011 operating results for
100% of the pool's non-specially serviced and non-defeased loans.
Excluding specially serviced loans, Moody's weighted average LTV
is 95% compared to 83% at Moody's prior review. Moody's net cash
flow reflects a weighted average haircut of 30% to the most
recently available net operating income. Moody's value reflects a
weighted average capitalization rate of 9.6%.

Excluding special serviced loans, Moody's actual and stressed
DSCRs are 0.99X and 1.24X, respectively, compared to 1.13X and
1.34X at last review. Moody's actual DSCR is based on Moody's net
cash flow (NCF) and the loan's actual debt service. Moody's
stressed DSCR is based on Moody's NCF and a 9.25% stressed rate
applied to the loan balance.

The top three conduit loans represent 44.5% of the pool. The
largest conduit loan is the Raytheon Building Loan ($14.2 million
-- 28.2% of the pool), which is secured by a 112,700 SF office
building located in El Segundo, California. The building is fully
leased to the Raytheon Corporation. Raytheon's lease is expiring
at the end of January 2013 and they indicated they will vacate the
building at lease termination. Moody's value is based on current
market rental levels and occupancy taking into account projected
lease-up time. Moody's LTV and stressed DSCR are 114% and 0.95X,
respectively, compared to 79% and 1.36X at last review.

The second largest conduit loan is Chapel Ridge of Emporia
Apartments Loan ($4.4 million -- 8.7% of the pool), which is
secured by a 128 unit multifamily building located in Emporia,
Kansas. As of September 2012 the property was 94% leased compared
to 87% in December 2011. Moody's LTV and stressed DSCR are 86% and
1.14X, respectively, compared to 91% and 1.08X at last review.

The third largest conduit loan is the Chapel Ridge Apartments at
Haysville Loan ($3.8 million -- 7.6% of the pool), which is
secured by a 128 unit multifamily property located in Haysville,
Kansas. As of September 2012, the property was 95% leased, which
is the same as in December 2011. The property's performance is
stable and benefitting from amortization. Moody's LTV and stressed
DSCR are 76% and 1.30X, respectively, compared to 80% and 1.22X at
last review.


DRYDEN XVI: S&P Raises Rating on Class D Notes to 'BB+'
-------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on four
classes of notes from Dryden XVI Leveraged Loan CDO 2006, a
collateralized loan obligation (CLO) transaction that is
managed by Prudential Investment Management.  At the same time,
S&P affirmed the current rating on the class A-1 note.

"We last took rating action on this transaction in January of 2011
where we upgraded the class A-2, B, C, and D notes to their
original ratings.  This transaction will be exiting its
reinvestment period on January 2013.  As of the November 2012
trustee report, the balance of defaulted assets has decreased to
$7.69 million from $9.41 million in December 2010 and the balance
of 'CCC' rated assets has decreased to $11.97 million from $25.31
million.  The overcollateralization ratios continue to remain well
above their target triggers while the class A interest coverage
ratio has increased to 880.45% from 827.69%.  There is a
significant balance of assets with LIBOR floor base rates which
can provide additional credit given a low interest rate
environment," S&P said.

Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions as it deems necessary.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

RATING ACTIONS

Dryden XVI Leveraged Loan CDO 2006

                       Rating
Class               To           From
A-1                 AA+ (sf)     AA+ (sf)
A-2                 AA+ (sf)     AA (sf)
B                   A+ (sf)       A (sf)
C                   BBB+ (sf)    BBB (sf)
D                   BB+ (sf)     BB (sf)


ELM BV: S&P Lowers Rating on Series 98 Notes to 'D(sf)'
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating to 'D (sf)'
from 'CCC- (sf)' on the notes issued by ELM B.V.'s series 98, a
synthetic collateralized debt obligation (CDO) transaction backed
by corporate assets.

The downgrade follows credit events within the transactions'
underlying portfolio, which have caused the notes to incur partial
principal losses.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING LOWERED

ELM B.V.
Series 98
                            Rating
Class                 To           From

SecdCrLkd Notes     D (sf)       CCC- (sf)


EMBLEM FINANCE 2: Fitch Cuts Rating on Credit-Linked Notes to 'BB'
------------------------------------------------------------------
Fitch Ratings has downgraded the notes issued by Emblem Finance
Company No. 2 Limited as:

-- CLP 5,082,000,000 credit-linked notes to 'BBsf' from 'BB+sf';
    Outlook Stable.

The downgrade follows Fitch's downgrade of the eligible
investments to the transaction, HSBC Holdings Plc subordinated
notes (CUSIP US404280AF65, rated 'A+') on Dec. 7, 2012. Fitch
monitors the performance of the underlying risk-presenting
entities and adjusts the rating accordingly through application of
its current credit-linked note (CLN) criteria, 'Global Rating
Criteria for Single- and Multi-Name Credit-Linked Notes' dated
Feb. 22, 2012.

The rating considers the credit quality of the HSBC Holdings Plc
subordinated notes, JPMorgan Chase & Co. as swap counterparty
(rated 'A+', Outlook Stable), and Votorantim Participacoes S.A.'s
(VPAR) current Issuer Default Rating (IDR) of 'BBB' with a Stable
Outlook. The Rating Outlook reflects the Outlook on the main risk
driver, VPAR, which is the lowest rated risk-presenting entity.

Emblem No. 2 is a single name CLN transaction designed to provide
credit protection on the VPAR with a reference amount of
CLP5,082,000,000 (USD10 million). This protection is arranged
through a credit default swap (CDS) between the issuer and the
swap counterparty, JPMorgan Chase & Co. Proceeds from the issuance
of the notes were used to purchase USD10 million HSBC Holdings Plc
subordinated notes as a collateral asset for the CDS. The notes
are rated to the payment of interest and principal per the
transaction documents. All payments are made in USD amounts
adjusted according to both the value of the Undidad de Fomento
(UF) and the CLP/USD exchange rate as outlined in the transaction
documents.


FLAGSHIP CLO III: S&P Retains 'BB+' Rating to Class D Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on the class
B notes from Flagship CLO III, a collateralized loan obligation
(CLO) transaction managed by Deutsche Asset Management Inc.
Simultaneously, S&P affirmed its ratings on the class A funded, A
revolving, C, and D notes from the transaction.  In addition, S&P
removed the ratings on the class B, C, and D notes from
CreditWatch, where it placed them on Oct. 29, 2012, with positive
implications.

The rating actions reflect the increased level of credit support
available to rated notes as the deal continues to amortize and pay
down the class A notes.  Since S&P's last review, the class A
notes collectively paid down by more than $42 million to 11% of
their original issuance amount.

The pay down of the notes increased the overcollateralization
(O/C) ratios in the transaction. The trustee reports the following
O/C ratios in the December 2012 monthly report:

   -- The class A ratio is 326.43%, up from 188.55% in the April
      2012 trustee report that S&P used for its May 2012 analysis;

   -- The class B ratio is 164.04%, compared with 113.15% in April
      2012;

   -- The class C ratio is 134.46%, compared with 108.21% in April
      2012; and

   -- The class D ratio is 117.22% %, compared with 108.80% in
      April 2012.

The balance of long-dated securities is $7.8 million, which now
represents 11.13% of the performing portfolio balance.  Although
S&P expects this percentage to rise as the portfolio continues to
amortize, the credit risks due to potential market values risk are
somewhat offset given the high O/C levels.

The affirmations on the class C and D notes were driven by the
application of the largest obligor default test.

The upgrade reflects the increased credit support to the notes at
the prior rating level.  The affirmations on class A (funded and
revolving) notes reflect the availability of adequate credit
support at the current rating levels.

S&P will continue to review whether it considers the ratings on
the notes to be consistent with the credit enhancement available
to support them, and S&P will take rating actions as it deem
necessary.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

Flagship CLO III

                   Rating
Class        To              From

B            AAA (sf)        AA+ (sf)/Watch Pos
C            A+ (sf)         A+ (sf)/Watch Pos
D            BB+ (sf)        BB+ (sf)/Watch Pos

RATINGS AFFIRMED

Flagship CLO III

Class              Rating
A Funded           AAA (sf)
A Revolving        AAA (sf)


GALLATIN CLO II: S&P Affirms 'BB' Rating on Class B-2L Notes
------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the class
A-1L, A-2L, A-3L, and B-1L notes from Gallatin CLO II 2005-1 Ltd.,
a collateralized loan obligation (CLO) transaction managed by
UrsaMine Credit Advisors.  In addition, S&P affirmed its rating on
the class B-2L notes.  S&P also removed its ratings on all of the
classes in this review from CreditWatch, where it place them on
Oct. 29, 2012, with positive implications.

The upgrades of the class A-1L, A-2L, A-3L, and B-1L notes reflect
paydowns to the class A-1L notes.  S&P affirmed its rating on the
class B-2L notes to reflect the availability of adequate credit
support at the current rating level.

The transaction continues to pay down class A-1L. On Nov. 15,
2012, class A-1L notes received a $40.2 million principal pay
down.  After this most recent payment, the class A-1L outstanding
balance is 49.5% of its original balance.

As a result of the paydowns, the overcollateralization (O/C)
ratios have improved significantly.  The trustee reported the
following O/C ratios in the December 2012 monthly report:

   -- The class A-3L O/C ratio was 126.96%, compared with a
      reported ratio of 115.88% in November 2011;

   -- The class B-1L O/C ratio was 114.67%, compared with a
      reported ratio of 109.23% in November 2011; and

   -- The class B-2L O/C ratio was 108.66%, compared with a
      reported ratio of 106.01% in November 2011.

S&P will continue to review whether, in its view, the ratings
currently assigned to the notes remain consistent with the credit
enhancement available to support them and take rating actions as
it deem necessary.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

Gallatin CLO II 2005-1 Ltd.

Class              Rating
             To               From

A-1L         AAA (sf)         AA+ (sf)/Watch Pos
A-2L         AA+ (sf)         AA (sf) /Watch Pos
A-3L         AA- (sf)         A+ (sf) /Watch Pos
B-1L         BBB+ (sf)        BBB (sf) /Watch Pos
B-2L         BB (sf)          BB (sf) /Watch Pos


GREYROCK CDO: Moody's Raises Ratings on 2 Note Classes to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Greyrock CDO Ltd.:

U.S.$19,000,000 Class A-2L Floating Rate Notes Due November 2017,
Upgraded to Aaa (sf); previously on July 11, 2011 Upgraded to Aa1
(sf);

U.S.$22,500,000 Class A-3L Floating Rate Notes Due November 2017,
Upgraded to Aa1 (sf); previously on July 11, 2011 Upgraded to A2
(sf);

U.S.$15,750,000 Class B-1L Floating Rate Notes Due November 2017,
Upgraded to A2 (sf); previously on July 11, 2011 Upgraded to Baa2
(sf);

U.S.$2,000,000 Class B-1F 6.5210% Notes Due November 2017,
Upgraded to A2 (sf); previously on July 11, 2011 Upgraded to Baa2
(sf);

U.S.$8,000,000 Class B-2L Floating Rate Notes Due November
2017(current balance of 7,289,964.20) Upgraded to Ba1 (sf);
previously on July 11, 2011 Upgraded to Ba2 (sf);

U.S.$6,000,000 Class B-2F 9.4130% Notes Due November 2017 (current
balance of 5,467,473.17), Upgraded to Ba1 (sf); previously on July
11, 2011 Upgraded to Ba2 (sf);

U.S.$5,000,000 Class C-1A Combination Notes Due November 2017
(current rated balance of $2,853,623.48), Upgraded to Aaa (sf);
previously on July 11, 2011 Upgraded to A1 (sf).

Ratings Rationale

According to Moody's, the rating actions taken on the notes are
primarily a result of deleveraging of the Class A-1L notes and an
increase in the transaction's overcollateralization ratios since
the rating action in July 2011. Moody's notes that the Class A-1L
Notes have been paid down by approximately 44.7% or $101.1 million
since the last rating action. Based on the latest trustee report
dated December 3, 2012, the Senior Class A , Class A, Class B-1
and Class B-2 overcollateralization ratios are reported at
145.96%, 126.27%, 114.12% and 106.74%, respectively, versus July
2011 levels of 126.81%, 116.15%,108.94% and 104.27%, respectively.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and weighted average recovery rate, may
be different from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of $200.7 million,
defaulted par of $16.2 million, a weighted average default
probability of 17.99% implying a WARF of 2871), a weighted average
recovery rate upon default of 50.06%, and a diversity score of 61.
The default and recovery properties of the collateral pool are
incorporated in cash flow model analysis where they are subject to
stresses as a function of the target rating of each CLO liability
being reviewed. The default probability is derived from the credit
quality of the collateral pool and Moody's expectation of the
remaining life of the collateral pool. The average recovery rate
to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. In each case,
historical and market performance trends and collateral manager
latitude for trading the collateral are also factors.

Greyrock CDO Ltd., issued in September 2005, is a collateralized
loan obligation backed primarily by a portfolio of senior secured
loans.

The methodologies used in this rating were "Moody's Approach to
Rating Collateralized Loan Obligations" published in June 2011,
and "Using the Structured Note Methodology to Rate CDO Combo-
Notes" published in February 2004.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Approach to Rating Collateralized Loan Obligations"
rating methodology published in June 2011.

In addition to the base case analysis described above, Moody's
also performed sensitivity analyses to test the impact on all
rated notes of various default probabilities. Below is a summary
of the impact of different default probabilities (expressed in
terms of WARF levels) on all rated notes (shown in terms of the
number of notches' difference versus the current model output,
where a positive difference corresponds to lower expected loss),
assuming that all other factors are held equal:

Moody's Adjusted WARF -- 20% (2297)

Class A-1L: 0
Class A-2L: 0
Class A-3L: +1
Class B-1F: +2
Class B-1L: +2
Class B-2F: +2
Class B-2L: +2
Class C-1A Combo: 0

Moody's Adjusted WARF + 20% (3445)

Class A-1L: 0
Class A-2L: 0
Class A-3L: -1
Class B-1F: -2
Class B-1L: -2
Class B-2F: -1
Class B-2L: -1
Class C-1A Combo: 0

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of upcoming speculative-grade debt maturities which
may create challenges for issuers to refinance. CLO notes'
performance may also be impacted by 1) the manager's investment
strategy and behavior and 2) divergence in legal interpretation of
CLO documentation by different transactional parties due to
embedded ambiguities.

Sources of additional performance uncertainties are described
below:

1) Deleveraging: The main source of uncertainty in this
transaction is whether deleveraging from unscheduled principal
proceeds will continue and at what pace. Deleveraging may
accelerate due to high prepayment levels in the loan market and/or
collateral sales by the manager, which may have significant impact
on the notes' ratings.

2) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed defaulted
recoveries assuming the lower of the market price and the recovery
rate in order to account for potential volatility in market
prices.

3) Long-dated assets: The presence of assets that mature beyond
the CLO's legal maturity date exposes the deal to liquidation risk
on those assets. Moody's assumes an asset's terminal value upon
liquidation at maturity to be equal to the lower of an assumed
liquidation value (depending on the extent to which the asset's
maturity lags that of the liabilities) and the asset's current
market value.


JP MORGAN 2007-LDP10: Fitch Cuts Ratings on 2 Cert. Classes to Csf
------------------------------------------------------------------
Fitch Ratings has downgraded 10 classes and affirmed 22 classes of
J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMCC)
commercial mortgage pass-through certificates series 2007-LDP10
due to increased loss expectations on the specially serviced loans
and further deterioration of loan performance. A detailed list of
rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 20.4% of the remaining pool; expected
losses on the original pool balance total 20.1%, including 2.6% to
date. Fitch has designated 93 loans (49.8%) as Fitch Loans of
Concern, which includes 33 specially serviced assets (21.9%).

As of the December 2012 distribution date, the pool's aggregate
principal balance has been reduced by 14.7% to $4.55 billion from
$5.33 billion at issuance. No loans have defeased since issuance.
Interest shortfalls are currently affecting classes A-JS through
NR.

The largest contributor to expected losses is the specially-
serviced One Skyline Tower loan (4.5% of the pool), which is
secured by eight office buildings in Falls Church, VA. This loan
transferred to special servicing in March 2012 for imminent
default. The sponsor, Vornado, cited the Base Realignment and
Closure statute (BRAC), as contributing to recent and upcoming
vacancies at the properties. In addition, the sponsor has
indicated that there may be significant capital required to re-
tenant the properties. The pari passu loan is under a forbearance
agreement as of November 2012.

The next largest contributor to expected losses is the specially-
serviced StratREAL Industrial Portfolio II loan (3.3%), which is
secured by a portfolio of 10 industrial properties located in
Tennessee, Ohio, and California. During 2010 and 2011, the
portfolio lost several major tenants due to tenant lease expiries
and termination options. The loan was transferred to special
servicing in December 2012 for imminent default. The portfolio's
combined occupancy is 67%; as such, the properties are not
generating enough cash flow to support the debt service.

The third largest contributor to expected losses is the specially-
serviced Solana loan (3.1%), which is secured by an office complex
located in Westlake, TX. The pari passu loan was transferred to
special servicing in March 2009 for imminent default and has since
been modified. The reported occupancy is approximately 67%. The
latest reported appraisal from May 2012 indicates a value
significantly below the loan amount.

Fitch downgrades these classes as indicated, and has assigned or
revised Recovery Estimates (REs):

-- $359 million class A-M to 'Bsf' from 'BBBsf', Outlook
    Negative;
-- $174.1 million class A-MS to 'Bsf' from 'BBBsf', Outlook
    Negative;
-- $71.8 million class B to 'CCsf' from 'CCCsf', RE 0%;
-- $34.8 million class B-S to 'CCsf' from 'CCCsf', RE 0%;
-- $26.9 million class C to 'CCsf' from 'CCCsf', RE 0%;
-- $13.1 million class C-S to 'CCsf' from 'CCCsf', RE 0%;
-- $49.4 million class D to 'CCsf' from 'CCCsf', RE 0%;
-- $23.9 million class D-S to 'CCsf' from 'CCCsf', RE 0%;
-- $44.9 million class F to 'Csf' from 'CCsf', RE 0%%;
- -$21.8 million class F-S to 'Csf' from 'CCsf', RE 0%%;

Fitch affirms these classes and assigns or revises Rating Outlooks
as indicated:

-- $231.7 million class A-2 at 'AAAsf', Outlook to Negative from
    Stable;
-- $443.7 million class A-2S at 'AAAsf', Outlook to Negative from
    Stable;
-- $83.7 million class A-2SFL at 'AAAsf', Outlook to Negative
    from Stable;
-- $1.7 billion class A-3 at 'AAAsf', Outlook to Negative from
    Stable;
-- $179.9 million class A-3S at 'AAAsf', Outlook to Negative from
    Stable;
-- $421.4 million class A-1A at 'AAAsf', Outlook to Negative from
    Stable;
-- $12.9 million class A-2SFX at 'AAAsf', Outlook to Negative
    from Stable.

Fitch affirms these classes as indicated:

-- $200.7 million class A-J at 'CCCsf', RE 0%;
-- $145.8 million class A-JS at 'CCCsf', RE 0%;
-- $100 million class A-JFL at 'CCCsf', RE 0%;
-- $40.4 million class E at 'CCsf', RE 0%;
-- $19.6 million class E-S at 'CCsf', RE 0%;
-- $44.9 million class G at 'Csf', RE 0%;
-- $21.8 million class G-S at 'Csf', RE 0%;
-- $40.4 million class H at 'Csf', RE 0%;
-- $19.6 million class H-S at 'Csf', RE 0%;

The class A-1 and A-1S certificates have paid in full. Classes J,
K, L, M, N, and P remain at 'Dsf'; RE 0% due to realized losses.
Fitch does not rate the class NR certificates. Fitch previously
withdrew the rating on the interest-only class X certificates.


KATONAH V: S&P Raises Rating on Class C Notes to CCC+
-----------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the class
B-1, B-2, and C notes from Katonah V Ltd. and removed them from
CreditWatch with positive implications, where it placed them in
October 2012.  At the same time, S&P affirmed its ratings on the
class A-2 notes (see list).  Katonah V Ltd. is a collateralized
loan obligation (CLO) transaction managed by INVESCO Senior
Secured Management Inc. that closed in June 2003.

The upgrades reflect paydowns to the class A-2 notes and the
subsequent increase in overcollateralization ratios.  The
transaction's reinvestment period ended in May 2008, and the
transaction has paid down the class A-1 notes in full and the
class A-2 note remaining balance is now less than $1 million.

The rating actions on the class B-1, B-2, and C notes were driven
by the application of S&P's largest obligor test for corporate
CDOs.

The affirmation reflects the sufficient credit support available
to the notes at the current rating levels.

Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions as it deems necessary.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

  Katonah V Ltd.

                         Rating
  Class               To           From
  B-1                 A+ (sf)      BBB- (sf)/Watch Pos
  B-2                 A+ (sf)      BBB- (sf)/Watch Pos
  C                   CCC+ (sf)    CCC- (sf)/Watch Pos

  RATING AFFIRMED

  Katonah V Ltd.
  Class               Rating
  A-2                 AAA (sf)


LANDMARK VII: S&P Raises Rating on Class B-2L Notes to 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the class
A-1L, A-2L, A-3L, B-1L and B-2L notes from Landmark VII CDO Ltd.,
a U.S. collateralized loan obligation (CLO) transaction managed by
Sound Harbor Partners LLC (see list).  This transaction was
previously managed by Aladdin Capital Management LLC.

"We have been notified that Sound Harbor Partners LLC has taken
over collateral management responsibilities from Aladdin Capital
Management LLC by assignment.  Based on our review of the
information provided by Sound Harbor Partners LLC we have provided
Rating Agency Confirmation (RAC) following the execution of
the assignment)," S&P said.

"The upgrades mainly reflect paydowns to the class A-1L notes.
Since our review in Feb 2012, the A-1L notes have paid down over
$18 million and the notes are currently at 90.25% of their
original balance at issuance.  As a result, the credit enhancement
available to support the notes has improved since we last
upgraded the notes," S&P added.

The upgrades also reflect an improvement in the
overcollateralization (O/C) available to support the notes.  As
per the December 3, 2012, trustee report, which we used for the
current review, all the O/C ratios improved compared
with those at the time of the review in February 2012.

The class B-2L note rating was constrained by the application of
the largest obligor default test, a supplemental stress test we
introduced as part of our 2009 corporate criteria update.
Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions as it deems necessary.

              STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

RATING AND CREDITWATCH ACTIONS

Landmark VII CDO Ltd

                   Rating
Class         To           From
A-1L          AAA (sf)     AA+ (sf)
A-2L          AA+ (sf)     AA- (sf)
A-3L          A+ (sf)      A- (sf)
B-1L          BBB+ (sf)    BBB- (sf)
B-2L          B+ (sf)      CCC+ (sf)

TRANSACTION INFORMATION

Issuer:             Landmark VII CDO Ltd
Coissuer:           Landmark VII CDO (Delaware) Corp
Collateral manager: Sound Harbor Partners LLC
Underwriter:        Bear Stearns Cos. LLC
Trustee:            The Bank of New York Mellon
Transaction type:   Cash flow CDO


LANDMARK VIII: S&P Affirms 'BB' Rating on Class E Notes
-------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on five
classes of notes from Landmark VIII CLO Ltd., a collateralized
loan obligation (CLO) transaction.  At the same time, S&P affirmed
the current ratings on two classes of notes. "We have been
notified that Sound Harbor Partners is planning to take over
collateral management responsibilities from Aladdin Capital
Management by assignment.  Based on our review of the information
that Sound Harbor provided, we plan to provide RAC when the
assignment is executed," S&P said.

The upgrades and affirmation to the class A-1 notes reflect the
improvement in the credit quality of the portfolio.  "We last took
rating action on this transaction in February 2011, when we
upgraded the class C and E notes.  This transaction exited its
reinvestment period in October 2012.  As of the November 2012
trustee report, the balance of 'CCC' rated assets has decreased to
$29.25 million from $66.52 million in November of 2010.  The class
A/B overcollateralization ratio no longer has haircuts due to the
'CCC' rated assets and has increased to 128.08% from 125.51%," S&P
added.

S&P affirmed the rating on the class E notes reflect the
availability of credit support at the current rating level.

Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions as it deems necessary.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

Landmark VIII CLO Ltd.

Class                                To            From
A-1                                   AAA(sf)       AAA(sf)
A-2                                   AAA(sf)       AA+(sf)
B                                     AA+(sf)       AA-(sf)
C                                     A+(sf)        A(sf)
D                                     BBB+(sf)      BBB-(sf)
E                                     BB(sf)        BB(sf)
Composite Securities              BBB+(sf)      BBB-(sf)


LANDMARK IX: S&P Affirms 'BB' Rating on Class E Notes
-----------------------------------------------------
Standard & Poor's Ratings Services raised its rating on the class
C notes of Landmark IX CDO Ltd.  At the same time, S&P affirmed
the ratings on the class A-1, A-2, B, D, and E notes (see list).
Landmark IX CDO Ltd. is a collateralized loan obligation (CLO)
transaction that closed in April 2007.

"We have been notified that Sound Harbor Partners LLC is planning
to take over collateral management responsibilities from Aladdin
Capital Management LLC by assignment.  Based on our review of the
information provided by Sound Harbor Partners LLC we plan to
provide Rating Agency Confirmation (RAC) when the assignment is
executed," S&P said.

"The transaction's reinvestment period is expected to end in
April 2013. The upgrade reflects the improved credit quality of
the transaction's underlying asset portfolio which has benefited
the rated notes, since our February 2012 rating actions.  The
transaction used proceeds designated for reinvestments to build
additional collateral in the portfolio.  We also note a decrease
in the amount of 'CCC' rated obligations held in the portfolio
over
the same period.  As a result, the class A/B, C, D, and E
overcollateralization (O/C) ratios have increased," S&P added.

The affirmations reflect the sufficient credit support available
to the notes at the current rating levels.

Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions as it deems necessary.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING ACTIONS

Landmark IX CDO Ltd.

                    Rating         Rating
Class               To             From
C                   A (sf)         A- (sf)

RATINGS AFFIRMED
Landmark IX CDO Ltd.

Class               Rating
A-1                 AAA (sf)
A-2                 AA+ (sf)
B                   AA (sf)
D                   BBB (sf)
E                   BB (sf)


MASTR ASSET 2004-WMC2: Moody's Corrects Rating on M-Tranche
-----------------------------------------------------------
Moody's Investors Service has corrected the rating of the Class M-
1 tranche issued by MASTR Asset Backed Securities Trust 2004-WMC2
to Ba2 (sf) from Baa2 (sf). On December 12, 2012, the rating for
this tranche was Upgraded to Baa2 (sf) instead of Ba2 (sf) due to
an internal administrative error.

The list of affected actions has been updated and may be found at:
http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF309916

For the December 12, 2012 press release titled "Moody's takes
action on $223 million of Subprime RMBS issued by various trusts
from 2001 to 2004," in the rating actions list for issuer MASTR
Asset Backed Securities Trust 2004-WMC2, the rating for the Class
M-1 tranche was corrected to read: "Cl. M-1, Upgraded to Ba2 (sf);
previously on Mar 11, 2011 Downgraded to B2 (sf)".


MERRILL LYNCH 2005-CA: Moody's Affirms 'Caa2' Rating on L Certs.
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of 16 classes of
Merrill Lynch Financial Assets Inc., Commercial Mortgage Pass-
Through Certificates, Series 2005-Canada 15 as follows:

Cl. A-1, Affirmed at Aaa (sf); previously on Apr 11, 2005
Definitive Rating Assigned Aaa (sf)

Cl. A-2, Affirmed at Aaa (sf); previously on Apr 11, 2005
Definitive Rating Assigned Aaa (sf)

Cl. B, Affirmed at Aaa (sf); previously on Feb 16, 2011 Upgraded
to Aaa (sf)

Cl. C, Affirmed at Aa3 (sf); previously on Feb 16, 2011 Upgraded
to Aa3 (sf)

Cl. D-1, Affirmed at Baa1 (sf); previously on Feb 16, 2011
Upgraded to Baa1 (sf)

Cl. D-2, Affirmed at Baa1 (sf); previously on Feb 16, 2011
Upgraded to Baa1 (sf)

Cl. E-1, Affirmed at Baa3 (sf); previously on Apr 11, 2005
Definitive Rating Assigned Baa3 (sf)

Cl. E-2, Affirmed at Baa3 (sf); previously on Apr 11, 2005
Definitive Rating Assigned Baa3 (sf)

Cl. F, Affirmed at Ba1 (sf); previously on Apr 11, 2005 Definitive
Rating Assigned Ba1 (sf)

Cl. G, Affirmed at Ba2 (sf); previously on Apr 11, 2005 Definitive
Rating Assigned Ba2 (sf)

Cl. H, Affirmed at Ba3 (sf); previously on Apr 11, 2005 Definitive
Rating Assigned Ba3 (sf)

Cl. J, Affirmed at B2 (sf); previously on Dec 3, 2009 Downgraded
to B2 (sf)

Cl. K, Affirmed at Caa1 (sf); previously on Dec 3, 2009 Downgraded
to Caa1 (sf)

Cl. L, Affirmed at Caa2 (sf); previously on Dec 3, 2009 Downgraded
to Caa2 (sf)

Cl. XC-1, Affirmed at Ba3 (sf); previously on Feb 22, 2012
Downgraded to Ba3 (sf)

Cl. XC-2, Affirmed at Ba3 (sf); previously on Feb 22, 2012
Downgraded to Ba3 (sf)

RATINGS RATIONALE

The affirmations of the principal classes are due to key
parameters, including Moody's loan to value (LTV) ratio, Moody's
stressed debt service coverage ratio (DSCR) and the Herfindahl
Index (Herf), remaining within acceptable ranges. Based on Moody's
current base expected loss, the credit enhancement levels for the
affirmed classes are sufficient to maintain their current ratings.

The ratings of the IO Classes, Classes XC-1 & XC-2, are consistent
with the credit performance of their referenced classes and thus
are affirmed.

Moody's rating action reflects a base expected loss of 1.8% of the
current balance, the same as at last review. Moody's provides a
current list of base expected losses for conduit and fusion CMBS
transactions on moodys.com at
http://v3.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255
Depending on the timing of loan payoffs and the severity and
timing of losses from specially serviced loans, the credit
enhancement level for investment grade classes could decline below
the current levels. If future performance materially declines, the
expected level of credit enhancement and the priority in the cash
flow waterfall may be insufficient for the current ratings of
these classes.

The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. From time to time, Moody's may, if warranted, change
these expectations. Performance that falls outside the given range
may indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. The
decision to take (or not take) a rating action is dependent on an
assessment of a range of factors including, but not exclusively,
the performance metrics.

Primary sources of assumption uncertainty are the extent of growth
in the current macroeconomic environment given the weak pace of
recovery and commercial real estate property markets. Commercial
real estate property values are continuing to move in a modestly
positive direction along with a rise in investment activity and
stabilization in core property type performance. Limited new
construction and moderate job growth have aided this improvement.
However, a consistent upward trend will not be evident until the
volume of investment activity steadily increases for a significant
period, non-performing properties are cleared from the pipeline,
and fears of a Euro area recession are abated.

The hotel sector is performing strongly with nine straight
quarters of growth and the multifamily sector continues to show
increases in demand with a growing renter base and declining home
ownership. Recovery in the office sector continues at a measured
pace with minimal additions to supply. However, office demand is
closely tied to employment, where growth remains slow and
employers are considering decreases in the leased space per
employee. Also, primary urban markets are outperforming secondary
suburban markets. Performance in the retail sector continues to be
mixed with retail rents declining for the past four years, weak
demand for new space and lackluster sales driven by internet sales
growth. Across all property sectors, the availability of debt
capital continues to improve with robust securitization activity
of commercial real estate loans supported by a monetary policy of
low interest rates.

Moody's central global macroeconomic scenario is for continued
below-trend growth in US GDP over the near term, with consumer
spending remaining soft in the US. Hurricane Sandy may skew near-
term economic data but is unlikely to have any long-term
macroeconomic effects. Primary downside risks include: a deeper
than expected recession in the euro area accompanied by deeper
credit contraction; the potential for a hard landing in major
emerging markets, including China, India and Brazil; an oil supply
shock; albeit abated in recent months; and given recent political
gridlock, excessive fiscal tightening in the US in 2013 leading
the US into recession. However, the Federal Reserve has shown
signs of support for activity by continuing with quantitative
easing.

The methodologies used in this rating were "Moody's Approach to
Rating Fusion U.S. CMBS Transactions" published in April 2005,
"Moody's Approach to Rating Structured Finance Interest-Only
Securities" published in February 2012, "Moody's Approach to
Rating CMBS Large Loan/Single Borrower Transactions" published in
July 2000 and "Moody's Approach to Rating Canadian CMBS" published
in May 2000.

Moody's review incorporated the use of the excel-based CMBS
Conduit Model v 2.61 which is used for both conduit and fusion
transactions. Conduit model results at the Aa2 (sf) level are
driven by property type, Moody's actual and stressed DSCR, and
Moody's property quality grade (which reflects the capitalization
rate used by Moody's to estimate Moody's value). Conduit model
results at the B2 (sf) level are driven by a paydown analysis
based on the individual loan level Moody's LTV ratio. Moody's
Herfindahl score (Herf), a measure of loan level diversity, is a
primary determinant of pool level diversity and has a greater
impact on senior certificates. Other concentrations and
correlations may be considered in Moody's analysis. Based on the
model pooled credit enhancement levels at Aa2 (sf) and B2 (sf),
the remaining conduit classes are either interpolated between
these two data points or determined based on a multiple or ratio
of either of these two data points. For fusion deals, the credit
enhancement for loans with investment-grade credit assessments is
melded with the conduit model credit enhancement into an overall
model result. Fusion loan credit enhancement is based on the
credit assessment of the loan which corresponds to a range of
credit enhancement levels. Actual fusion credit enhancement levels
are selected based on loan level diversity, pool leverage and
other concentrations and correlations within the pool. Negative
pooling, or adding credit enhancement at the credit assessment
level, is incorporated for loans with similar credit assessments
in the same transaction.

Moody's review also incorporated the CMBS IO calculator ver1.1,
which uses the following inputs to calculate the proposed IO
rating based on the published methodology: original and current
bond ratings and credit assessments; original and current bond
balances grossed up for losses for all bonds the IO(s)
reference(s) within the transaction; and IO type as defined in the
published methodology. The calculator then returns a calculated IO
rating based on both a target and mid-point. For example, a target
rating basis for a Baa3 (sf) rating is a 610 rating factor. The
midpoint rating basis for a Baa3 (sf) rating is 775 (i.e. the
simple average of a Baa3 (sf) rating factor of 610 and a Ba1 (sf)
rating factor of 940). If the calculated IO rating factor is 700,
the CMBS IO calculator ver1.1 would provide both a Baa3 (sf) and
Ba1 (sf) IO indication for consideration by the rating committee.

Moody's uses a variation of Herf to measure diversity of loan
size, where a higher number represents greater diversity. Loan
concentration has an important bearing on potential rating
volatility, including risk of multiple notch downgrades under
adverse circumstances. The credit neutral Herf score is 40. The
pool has a Herf of 18 compared to 20 at Moody's prior review.

In cases where the Herf falls below 20, Moody's also employs the
large loan/single borrower methodology. This methodology uses the
excel-based Large Loan Model v 8.5 and then reconciles and weights
the results from the two models in formulating a rating
recommendation. The large loan model derives credit enhancement
levels based on an aggregation of adjusted loan level proceeds
derived from Moody's loan level LTV ratios. Major adjustments to
determining proceeds include leverage, loan structure, property
type, and sponsorship. These aggregated proceeds are then further
adjusted for any pooling benefits associated with loan level
diversity, other concentrations and correlations.

Moody's ratings are determined by a committee process that
considers both quantitative and qualitative factors. Therefore,
the rating outcome may differ from the model output.

The rating action is a result of Moody's on-going surveillance of
commercial mortgage backed securities (CMBS) transactions. Moody's
monitors transactions on a monthly basis through a review
utilizing MOST(R) (Moody's Surveillance Trends) Reports and a
proprietary program that highlights significant credit changes
that have occurred in the last month as well as cumulative changes
since the last full transaction review. On a periodic basis,
Moody's also performs a full transaction review that involves a
rating committee and a press release. Moody's prior transaction
review is summarized in a press release dated February 2, 2012.

Deal Performance

As of the December 12, 2012 distribution date, the transaction's
aggregate certificate balance has decreased by 37% to $279.3
million from $444.0 million at securitization. The Certificates
are collateralized by 42 mortgage loans ranging in size from less
than 1% to 13% of the pool, with the top ten non-defeased loans
representing 51% of the pool. Four loans, representing 14% of the
pool, have defeased and are secured by U.S. Government securities.
The pool contains one loan with a credit assessment, representing
13% of the pool.

Three loans, representing 4% of the pool, are on the master
servicer's watchlist. The watchlist includes loans which meet
certain portfolio review guidelines established as part of the CRE
Finance Council (CREFC) monthly reporting package. As part of
Moody's ongoing monitoring of a transaction, Moody's reviews the
watchlist to assess which loans have material issues that could
impact performance.

One loan has been liquidated from the pool, resulting in
approximately a $630,000 loss (41% loss severity). There are
currently no loans in special servicing.

Moody's has assumed a high default probability for two poorly
performing loans representing 3% of the pool and has estimated an
aggregate $1.76 million loss (19% expected loss based on a 50%
probability default) from these troubled loans.

Moody's was provided with full year 2011 financials for 95% of the
pool's non-specially serviced and non-defeased loans.

Excluding troubled loans, Moody's weighted average LTV is 72%
compared to 75% at Moody's prior review. Moody's net cash flow
reflects a weighted average haircut of 12% to the most recently
available net operating income. Moody's value reflects a weighted
average capitalization rate of 9.0%.

Excluding troubled loans, Moody's actual and stressed DSCRs are
1.51X and 1.38X, respectively, compared to 1.53X and 1.38X at last
review. Moody's actual DSCR is based on Moody's net cash flow
(NCF) and the loan's actual debt service. Moody's stressed DSCR is
based on Moody's NCF and a 9.25% stressed rate applied to the loan
balance.

The loan with a credit assessment is the EPR Pooled Senior
Interest Loan ($34.95 million -- 12.5% of the pool), which
represents a 50% pari passu interest in a $69.9 million first
mortgage loan. The loan is secured by four separate multiplex
anchored retail plazas totaling 963,203 square feet (SF). All four
multiplexes are operated by AMC Cinemas. The portfolio's weighted
average occupancy as of October 2012 was 97% compared to 98% at
last review. The sponsor is Entertainment Properties Trust
(Moody's senior unsecured rating Baa3, positive outlook). The loan
benefits from a 20 year amortization schedule and has amortized
26% since securitization and 4% since last review. At last review,
the loan was on the watchlist due to deferred maintenance at one
of the four properties. The sponsor has since made improvements
and the loan is no longer on the watchlist. Moody's credit
assessment and stressed DSCR are Aaa and 4.03X, respectively,
compared to Aaa and 3.75X at last review.

The top three conduit loans represent 17.4% of the pool. The
largest conduit loan is the Calloway Saint John Loan ($20.1
million -- 7.2% of the pool), which is secured by a 271,000 SF
Wal-Mart anchored retail center located in St. John, New
Brunswick. The retail center is also shadowed anchored by a
Canadian Tire Store and Kent Home Improvement Centre. Wal-Mart
leases 47% of the net rentable area (NRA) through November 2019.
As of September 2012, the property was 95% leased compared to 94%
at last review. The loan is full recourse to Calloway REIT.
Moody's LTV and stressed DSCR are 70% and 1.31X, respectively, as
compared to 69% and 1.32X at last review.

The second largest conduit loan is the 276-288 St Jacques Loan
($14.8 million -- 5.3% of the pool), which is secured by 236,000
SF office property located in Old Montreal, Quebec. As of
September 2012 the property was 97% leased, the same at last
review. The Government of Quebec leases approximately 57% of the
NRA with lease expirations ranging from 2015-2017. Moody's LTV and
stressed DSCR are 73% and 1.42X, respectively, compared to 72% and
1.42X at last review.

The third largest conduit loan is the Prospera Portfolio ($13.8
million -- 4.9% of the pool), which is secured by eight cross-
collateralized and cross-defaulted office properties located in
Abbotsford, British Columbia. The properties total 108,000 SF. The
portfolio has benefited from 3% of amortization since last review.
Moody's LTV and stressed DSCR are 70% and 1.42X, respectively,
compared to 73% and 1.37X at last review.


MONASTERY 2006-I: S&P Retains 'CCC' Rating on Class D Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on all classes of notes in Monastery 2004-I
B.V. and Monastery 2006-I B.V.

On the November 2012 interest payment date (IPD), losses of
EUR5,493,875 (1.06% of the transaction) were realized in relation
to residual debt for Monastery 2006-I.  This contributed to a
reserve fund draw of about EUR5.3 million.  Similarly, on the
December 2012 IPD for Monastery 2004-I, losses of EUR2,855,321
(1.1% of the transaction) in relation to residual debt were
realized, contributing to a reserve fund draw of about
EUR2.7 million.

S&P's understanding is that the loss amounts in relation to
residual debt are "one-off" in nature, and relate to shortfalls on
loans following the sale of the borrowers' properties.
Historically, losses from foreclosed loans have been realized on
an ongoing basis in both transactions, so the non-timely
realization of losses in relation to residual debt is unexpected.

The effect of this has been a reduction in the credit enhancement
for all but the class A2 notes in both transactions.  The reserve
fund for Monastery 2004-I (48.3% of its target level) and
Monastery 2006-I (31.5% of its target level) provide 1.97% and
0.66% of credit enhancement to the notes, respectively.  This
compares with 3.70% and 1.93% of available credit enhancement to
the notes at S&P's last review in January 2012 (see "Rating
Actions In Dutch RMBS Deals Monastery 2004-I And 2006-I As
Framework Agreement Shows Further Duty-Of-Care Risks," published
on Jan. 27, 2012). Cumulative losses increased on the most recent
IPDs; to 1.11% from 0.69% for Monastery 2004-I, and to 1.68% from
0.91% for Monastery 2006-I.

"Given the reduction in credit enhancement and the uncertainty in
relation to the timely recognition of certain losses, we have
placed on CreditWatch negative our ratings on all classes of notes
in both transactions.  We aim to resolve the CreditWatch
placements in due course, following discussions with transaction
participants to gain a complete understanding of these losses.  We
understand that the issuer has instructed the servicer to
recognize a loss on loans in the same period as the underlying
property is disposed going forward," S&P said.

Monastery 2004-I and Monastery 2006-I are Dutch residential
mortgage-backed securities (RMBS) transactions backed by
residential mortgage loans to individuals located in the
Netherlands, originated by the now insolvent DSB Bank N.V. (DSB).

DUTY-OF-CARE CLAIMS

In October 2011, the bankruptcy trustee for DSB estimated the
maximum potential impact of duty-of-care claims at EUR9 million in
Monastery 2004-I and EUR12 million in Monastery 2006-I.  Claims
completed and processed have been provisioned to the respective
principal deficiency ledgers, and to date, are in line with S&P's
assumptions in January 2012.

SERVICING

Servicing should have been transferred to Quion Services B.V.
(Quion) in May 2012, but due to technical issues, the transfer has
not yet been completed.  S&P understands that Quion is still
expected to assume servicing responsibilities, but this is
unlikely to happen in the first quarter of 2013.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Rule applies to in-scope securities initially rated (including
preliminary ratings) on or after Sept. 26, 2011.  If applicable,
the Standard & Poor's 17g-7 Disclosure Reports included in this
credit rating report are available at
http://standardandpoorsdisclosure-17g7.com.

RATINGS LIST

Class               Rating
          To                    From

Ratings Placed On CreditWatch Negative

Monastery 2004-I B.V.
EUR861 Million Secured Mortgage-Backed Floating-Rate Notes

A2        AA- (sf)/Watch Neg     AA- (sf)
B         A (sf)/Watch Neg       A (sf)
C         BBB (sf)/Watch Neg     BBB (sf)
D         BB (sf)/Watch Neg      BB (sf)

Monastery 2006-I B.V.
EUR875 Million Secured Mortgage-Backed Floating-Rate Notes

A2        A (sf)/Watch Neg       A (sf)
B         BB+ (sf)/Watch Neg     BB+ (sf)
C         B (sf)/Watch Neg       B (sf)
D         CCC (sf)/Watch Neg     CCC (sf)


MORGAN STANLEY 2006-HQ10: Fitch Cuts Rating on D Certs to 'Csf'
---------------------------------------------------------------
Fitch Ratings has downgraded three and affirmed 17 classes of
Morgan Stanley Capital I Trust's commercial mortgage pass-through
certificates, series 2006-HQ10 (MSCI 2006-HQ10).  A detailed list
of rating actions follows at the end of this press release.

Key Rating Drivers

The downgrades reflect an increase in Fitch modeled losses across
the pool attributed to specially serviced loans, as well as
several loans in the top 15 with continued underperformance. Fitch
modeled losses of 11.2% of the remaining pool. Modeled losses are
12.9% of the original pool, including losses realized to date.

Fitch has designated 46 loans (33.6%) as Fitch Loans of Concern.
They include 10 specially serviced loans (14.8%), two of which are
among the top fifteen loans (8.6%). One of the top 15 loans is
defeased (5.6%).

As of the December 2012 distribution date, the pool's aggregate
principal balance has decreased by approximately 15.5% to $1.26
billion from $1.49 billion at issuance. Of this amount, 12.1% was
due to paydowns and 3.4% was due to realized losses. Interest
shortfalls totaling $6.6 million are affecting classes D through
P.

The largest contributors to modeled losses are three cross-
collateralized and cross-defaulted loans (5.7% of the pool)
secured by a portfolio of two unanchored retail properties and one
office property, totaling 336,074 square feet (sf), located in
Scottsdale, AZ. These loans were transferred to special servicing
in March 2012 for imminent default. The loans remain current.
According to the special servicer, discussions with the borrower
continue, but a final workout scenario has not yet been finalized.

The portfolio has suffered declining performance since issuance as
a result of market conditions and reductions in occupancy. As of
the September 2012 rent roll, combined portfolio occupancy was
79.9% down from the 84.1% at issuance. According to the rent roll,
approximately 51% of the property square footage has lease
expirations prior to the end of 2016 (the loan matures in October
2016). According to REIS and as of third-quarter-2012 (3Q'12), the
Scottsdale office submarket reported a vacancy rate of 27.8%.
Additionally, the North Scottsdale-Paradise Valley/North Phoenix
unanchored retail submarket reported a vacancy rate of 16.6%.

Year-end (YE) 2011 net operating income (NOI) has improved
slightly by 5.6% when compared to YE 2010. That said, NOI is still
approximately 30% below issuance. The most recent servicer-
reported debt service coverage ratio, on a NOI basis, was 1.09
times (x) as of YE 2011, a significant decrease from 1.55x at
issuance.

The second largest contributor to modeled losses is a REO asset
(2.8%) of a 272,136 sf retail property located in Shreveport, LA.
The loan was transferred to special servicing in September 2009
for imminent default. Occupancy has declined significantly due to
tenant bankruptcies and vacancies in 2008 and 2009. As of the June
2012 rent roll, the property was 56.2% occupied. The special
servicer continues to lease up the property hoping to increase
value.

The third largest contributor to modeled losses is secured by a
228,150 sf retail property (5.7%) located in Colorado Springs, CO.
As of the September 2012 rent roll, the property was 95% occupied.
According to the rent roll, approximately 62.6% of the property
square footage has lease expirations prior to the end of 2016 (the
loan matures in July 2016). According to REIS and as of 3Q'12, the
Northeast unanchored retail submarket of Colorado Springs reported
a vacancy rate of 15.5%.

Fitch downgrades these classes:

  -- $149.1 million class A-M to 'AAsf' from 'AAAsf'; Outlook
     Stable;
  -- $119.3 million class A-J to 'CCCsf' from 'BBsf'; RE 95%;
  -- $22.4 million class D to 'Csf' from 'CCsf'; RE 0%.

Additionally, Fitch affirms these classes:

-- $68 million class A-1A at 'AAAsf'; Outlook Stable;
-- $35.2 million class A-3 at 'AAAsf'; Outlook Stable;
-- $610.2 million class A-4 at 'AAAsf'; Outlook Stable;
-- $79.1 million class A-4FL at 'AAAsf'; Outlook Stable;
-- $70.9 million class A-4FX at 'AAAsf'; Outlook Stable;
-- $31.7 million class B at 'CCCsf'; RE 0%;
-- $16.8 million class C at 'CCCsf'; RE 0%;
-- $16.8 million class E at 'Csf'; RE 0%;
-- $18.6 million class F at 'Csf'; RE 0%;
-- $18.6 million class G at 'Csf'; RE 0%;
-- $3.5 million class H at 'Dsf'; RE 0%;
-- Class J at 'Dsf'; RE 0%;
-- Class K at 'Dsf'; RE 0%;
-- Class L at 'Dsf'; RE 0%;
-- Class M at 'Dsf'; RE 0%;
-- Class N at 'Dsf'; RE 0%;
-- Class O at 'Dsf'; RE 0%.

Classes A-1 and A-2 have been paid in full. Class P is not rated
by Fitch.

Fitch had previously withdrawn the ratings on the interest-only
classes X-1 and X-2. Additional information on the withdrawal of
the rating on classes X-1 and X-2 is available in the June 23,
2010 report, 'Fitch Revises Practice for Rating IO & Pre-Payment
Related Structured Finance Securities'.


ROCK 1-CRE: S&P Affirms 'CCC-' Rating on 2 Note Classes
-------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on four
classes from ROCK 1-CRE CDO 2006 Ltd., a commercial real estate
collateralized debt obligation (CRE CDO) transaction, and removed
them from CreditWatch with negative implications.  At the same
time, S&P affirmed its ratings on seven additional classes from
the same transaction and removed them from CreditWatch with
negative implications.

The raised ratings reflect changes to the collateral pool's
composition.  S&P have continued to monitor the deal as the
collateral has changed throughout the reinvestment period.
According to the Dec. 17, 2012, trustee report, commercial
mortgage-backed securities (CMBS) and CRE-CDO collateral totaled
41.8% of the collateral pool, with a weighted average rating of
'BBB+ (sf)'.  According to the May 11, 2010, trustee report, CMBS
and CRE-CDO collateral totaled 12.8% of the total collateral pool
and had a weighted average rating of 'BBB- (sf)'.  In addition to
the collateral pool changes, S&P considered that the reinvestment
period has ended as of December 2012 and that the transaction
is expected to continue deleveraging.

"The affirmations reflect our analysis of the transaction's
liability structure and the underlying collateral's credit
characteristics based on our criteria for rating global CDOs
backed by pooled structured finance (SF) assets.  We also
considered the amount of defaulted assets in the transaction and
their expected recoveries in our analysis," S&P said.

"Our CDO of SF criteria include revisions to our assumptions on
correlations, recovery rates, and default patterns and timings of
the collateral.  Specifically, correlations on commercial real
estate assets increased to 70%.  The criteria also include
supplemental stress tests (largest obligor default test and
largest industry default test) in our analysis," S&P added.

According to the Dec. 17, 2012, trustee report, the transaction's
collateral totaled $240.8 million, and the transaction's
iabilities totaled $241.7 million, down from $500.0 million at
issuance.  The transaction's current asset pool included the
following:

   -- Nine whole loans ($128.7 million, 53.4%);

   -- Seven CMBS tranches ($59.0 million, 24.5%);

   -- Six CRE CDO tranches ($41.7 million, 17.3%);

   -- One junior participation loan ($10.9 million, 4.5%); and

   -- One credit tenant lease ($607,400, 0.3%).

The trustee report noted one defaulted loan in the pool, the
Sycamore Town Center whole loan ($11.9 million, 4.9%). S& P
estimated a minimal loss upon resolution for the defaulted loan
based on information from the collateral manager, special
servicer, and third-party data providers.

S&P applied asset specific recovery rates in its analysis of the
nine performing loans ($127.7 million, 53.0%) using its criteria
and property evaluation methodology for U.S. and Canadian CMBS and
our CMBS global property evaluation methodology.

According to the Dec. 17, 2012, trustee report, the deal is
passing all overcollateralization coverage tests and interest
coverage tests.

Standard & Poor's will continue to review whether, in its view,
the ratings assigned to the notes remain consistent with the
credit enhancement available to support them and take rating
actions it determines necessary.

Temporary telephone contact numbers: Ivy Roldan (917-576-6562);
Samir Mistry (347-498-4781).

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATINGS RAISED AND REMOVED FROM CREDITWATCH

ROCK 1- CRE CDO 2006 Ltd.

                  Rating
Class     To                   From

A-1       AA+ (sf)            BBB (sf)/Watch Neg
A-2       A+ (sf)             BB+ (sf)/Watch Neg
B         BBB+ (sf)           BB+ (sf)/Watch Neg
C         BB+ (sf)            BB (sf)/Watch Neg

RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH
ROCK 1- CRE CDO 2006 Ltd.

                  Rating

Class     To                   From

D         BB- (sf)             BB- (sf)/Watch Neg
E         B+ (sf)              B+ (sf)/Watch Neg
F         B+ (sf)              B+ (sf)/Watch Neg
G         B (sf)               B (sf)/Watch Neg
H         CCC+ (sf)            CCC+ (sf)/Watch Neg
J         CCC- (sf)            CCC- (sf)/Watch Neg
K         CCC- (sf)            CCC- (sf)/Watch Neg


SANDELMAN FINANCE: Moody's Raises Rating on Cl. D Notes to 'Ba1'
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Sandelman Finance 2006-2 Ltd.:

U.S.$71,000,000 Class A-2 Second Priority Senior Notes Due 2019,
Upgraded to Aa1 (sf); previously on October 3, 2011 Confirmed at
Aa2 (sf);

U.S.$53,000,000 Class B Third Priority Senior Subordinate
Deferrable Notes Due 2019 (current outstanding balance
$36,290,285), Upgraded to A2 (sf); previously on October 3, 2011
Upgraded to Baa1 (sf);

U.S.$66,000,000 Class C Fourth Priority Junior Subordinate
Deferrable Notes Due 2019 (current outstanding balance
$54,860,190), Upgraded to Baa2 (sf); previously on October 3, 2011
Upgraded to Baa3 (sf);

U.S.$17,500,000 Class D Fifth Priority Junior Subordinate
Deferrable Notes Due 2019, Upgraded to Ba1 (sf); previously on
October 3, 2011 Upgraded to Ba2 (sf).

Moody's also affirmed the ratings of the following notes:

U.S.$60,000,000 Class A-1A First Priority Senior Delayed Draw
Notes Due 2019, Affirmed Aaa (sf); previously on February 27 2007
Assigned Aaa (sf);

U.S.$427,000,000 Class A-1B First Priority Senior Notes Due 2019,
Affirmed Aaa (sf); previously on February 27 2007 Assigned Aaa
(sf).

RATINGS RATIONALE

The rating actions reflect the benefit of a higher weighted
average recovery rate and a shorter weighted average life of the
underlying portfolio compared to the last rating action in October
2011, as well as increases in the overcollateralization ratios of
the rated notes. Moody's modeled a weighted average recovery rate
of 50.3% and a weighted average life of 3 years for the underlying
portfolio, compared to 48.7% and 4 years, respectively, at the
last rating action in October 2011. The overcollateralization
ratios of the rated notes have also improved since the last rating
action. Based on the trustee report in December 2012, the Class A
and Class B/C overcollateralization ratios are reported at 132.9%
and 114.3%, respectively, versus July 2011 levels of 131.3% and
111.3%, respectively. In particular, the Class B/C
overcollateralization ratio has increased in part due to the
diversion of excess interest to deleverage the Class B and Class C
notes, as required by the priority of payments. Since the rating
action in October 2011, $6.3 million of interest proceeds have
reduced the outstanding balance of the Class B Notes by $3.8
million or 9.5%, and the outstanding balance of the Class C Notes
by $2.5 million or 4.4%.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and weighted average recovery rate, may
be different from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of $730.3 million,
defaulted par of $14.5 million, a weighted average default
probability of 16.9% (implying a WARF of 2864), a weighted average
recovery rate upon default of 50.3%, and a diversity score of 32.
The default and recovery properties of the collateral pool are
incorporated in cash flow model analysis where they are subject to
stresses as a function of the target rating of each CLO liability
being reviewed. The default probability is derived from the credit
quality of the collateral pool and Moody's expectation of the
remaining life of the collateral pool. The average recovery rate
to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. In each case,
historical and market performance trends and collateral manager
latitude for trading the collateral are also factors.

Sandelman Finance 2006-2 Ltd., issued in January 2007, is a
collateralized loan obligation backed primarily by a portfolio of
senior secured loans.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Approach to Rating Collateralized Loan Obligations"
rating methodology published in June 2011.

In addition to the base case analysis described above, Moody's
also performed sensitivity analyses to test the impact on all
rated notes of various default probabilities. Below is a summary
of the impact of different default probabilities (expressed in
terms of WARF levels) on all rated notes (shown in terms of the
number of notches' difference versus the current model output,
where a positive difference corresponds to lower expected loss),
assuming that all other factors are held equal:

Moody's Adjusted WARF -- 20% (2291)

Class A-1A: 0
Class A-1B: 0
Class A-2: +1
Class B: +3
Class C: +2
Class D: +2

Moody's Adjusted WARF + 20% (3437)

Class A-1A: 0
Class A-1B: 0
Class A-2: -2
Class B: -2
Class C: -2
Class D: -1

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of upcoming speculative-grade debt maturities which
may create challenges for issuers to refinance. CLO notes'
performance may also be impacted by 1) the manager's investment
strategy and behavior and 2) divergence in legal interpretation of
CLO documentation by different transactional parties due to
embedded ambiguities.

Sources of additional performance uncertainties are described
below:

1) Deleveraging: The main source of uncertainty in this
transaction is whether deleveraging from unscheduled principal
proceeds will commence and at what pace. Deleveraging may
accelerate due to high prepayment levels in the loan market and/or
collateral sales by the manager, which may have significant impact
on the notes' ratings.

2) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed defaulted
recoveries assuming the lower of the market price and the recovery
rate in order to account for potential volatility in market
prices.


SANTANDER DRIVE 2013-1: Fitch to Rate Class E Notes at 'BBsf'
-------------------------------------------------------------
Fitch Ratings expects to rate Santander Drive Auto Receivables
Trust 2013-1 as:

   -- $184,000,000 class A-1 notes 'F1+sf';
   -- $355,000,000 class A-2 notes 'AAAsf'; Outlook Stable;
   -- $294,330,000 class A-3 notes 'AAAsf'; Outlook Stable;
   -- $137,710,000 class B notes 'AAsf'; Outlook Stable;
   -- $169,490,000 class C notes 'Asf'; Outlook Stable;
   -- $109,470,000 class D notes 'BBBsf'; Outlook Stable;
   -- $42,370,000 class E notes 'BBsf'; Outlook Stable.

Fitch's stress and rating sensitivity analysis are discussed in
the presale report titled 'Santander Drive Auto Receivables Trust
2013-1', dated Jan. 7, 2013.

Key Rating Drivers:

Weaker Credit Quality: The credit quality of 2013-1 is
representative of the subprime market, though lower quality than
2012-A, which is not rated (NR) by Fitch, and 2012-6. The weighted
average (WA) Fair Isaac Corp. (FICO) score is 591 and internal
loss forecasting score (LFS) is 564. Used vehicles total 73.1%,
the WA loan-to-value (LTV) ratio is 116%, and WA seasoning totals
one month.

Reintroduction of Pre-funding: 2013-1 includes a pre-funding
mechanism, whereby further collateral will be sold to the trust
during a post-closing period. SDART transactions have not utilized
this mechanism since 2007. Pre-funding introduces ambiguity to
collateral characteristics and cash flow timing. Fitch has
accounted for pre-funding in deriving the transaction loss proxy.

Consistent Credit Enhancement and Structure: The cash flow
distribution is a sequential-pay structure. The reserve totals
2.00% (non-declining), and initial overcollateralization (OC) is
8.50% (both of the initial pool balance), growing to a target of
15% (of the current pool balance). CE levels are identical to
2012-A (NR) but are slightly lower than 2012-6 for the class A
notes.

Stable Portfolio/Securitization Performance: Losses on SCUSA's
portfolio and 2010-2011 securitizations declined from prior years
supported by the economic rebound and strong used vehicle values
elevating recovery rates.

Stable Corporate Health: SCUSA recorded solid financial results
recently and has been profitable since 2007. Fitch rates
Santander, the majority owner of SCUSA, 'BBB+/F2' with a Negative
Rating Outlook.

Consistent Origination/Underwriting/Servicing: SCUSA demonstrates
adequate abilities as originator, underwriter, and servicer,
evidenced by historical portfolio delinquency, loss experience,
and securitization performance. Fitch deems SCUSA capable to
service 2013-1.

Legal Structure Integrity: The legal structure of the transaction
should provide that a bankruptcy of SCUSA would not impair the
timeliness of payments on the securities.


SANTANDER DRIVE 2013-1: S&P Assigns 'BB+' Rating to Class E Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its ratings to
Santander Drive Auto Receivables Trust 2013-1's $1,292.37 million
automobile receivables-backed notes series 2013-1.

The note issuance is an asset-backed securities transaction backed
by subprime auto loan receivables.

The ratings reflect S&P's view of:

-- The availability of 50.63%, 45.20%, 37.63%, 32.36%, and 28.92%
    of credit support for the class A, B, C, D, and E notes,
    respectively, based on stress cash flow scenarios (including
    excess spread), which provide coverage of more than 3.5x,
    3.0x, 2.3x, 1.75x, and 1.6x our 13.50%-14.50% expected
    cumulative net loss.

-- The timely interest and principal payments made under stressed
    cash flow modeling scenarios appropriate to the assigned
    ratings.

-- S&P's expectation that under a moderate ('BBB') stress
    scenario, all else being equal, its ratings on the class A, B,
    and C notes will remain within one rating category of the
    assigned ratings during the first year, and its ratings on the
    class D and E notes will remain within two rating categories
    of the assigned ratings, which is within the outer bounds of
    its credit stability criteria (see "Methodology: Credit
    Stability Criteria," published May 3, 2010).

-- The originator/servicer's history in the subprime/specialty
    auto finance business.

-- S&P's analysis of six years of static pool data on Santander
    Consumer USA Inc.'s lending programs.

-- The transaction's payment/credit enhancement and legal
    structures.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at
http://standardandpoorsdisclosure-17g7.com/1221.pdf.

RATINGS ASSIGNED

Santander Drive Auto Receivables Trust 2013-1

Class     Rating       Type           Interest          Amount
                                      rate            (mil. $)
A-1       A-1+ (sf)    Senior         Fixed             184.00
A-2       AAA (sf)     Senior         Fixed             355.00
A-3       AAA (sf)     Senior         Fixed             294.33
B         AA (sf)      Subordinate    Fixed             137.71
C         A (sf)       Subordinate    Fixed             169.49
D         BBB (sf)     Subordinate    Fixed             109.47
E         BB+ (sf)     Subordinate    Fixed              42.37


SEQUOIA MORTGAGE 2013-1: Fitch Rates $3.38MM Cl. B-4 Certs 'BBsf'
-----------------------------------------------------------------
Fitch Ratings assigns the following ratings to Sequoia Mortgage
Trust 2013-1, mortgage pass-through certificates, series 2013-1:

-- $151,646,000 class 1-A1 certificates 'AAAsf'; Outlook Stable;
-- $217,189,000 class 2-A1 certificates 'AAAsf'; Outlook Stable;
-- $151,646,000 notional class 1-AX certificates 'AAAsf'; Outlook
    Stable;
-- $217,189,000 notional class 2-AX certificates 'AAAsf'; Outlook
    Stable;
-- $10,146,000 class B-1 certificates 'AAsf'; Outlook Stable;
-- $6,764,000 class B-2 certificates 'Asf'; Outlook Stable;
-- $4,576,000 class B-3 certificates 'BBBsf'; Outlook Stable;
-- $3,382,000 class B-4 certificates 'BBsf'; Outlook Stable.

The 'AAAsf' rating on the senior certificates reflects the 7.30%
subordination provided by the 2.55% class B-1, 1.70% class B-2,
1.15% class B-3, 0.85% non-offered class B-4 and 1.05% non-offered
class B-5. The class B-5 is not rated by Fitch.

Fitch's ratings reflect the high quality of the underlying
collateral, the clear capital structure and the high percentage of
loans reviewed by third party underwriters. In addition, Wells
Fargo Bank, N.A. will act as the master servicer and Christiana
Trust will act as the Trustee for the transaction. For federal
income tax purposes, elections will be made to treat the trust as
two real estate mortgage investment conduits (REMICs).

SEMT 2013-1 will be Redwood Residential Acquisition Corporation's
first transaction of prime residential mortgages in 2013. The
certificates are supported by a pool of prime mortgage loans, with
79% fixed rate mortgages (FRMs) and 21% five-, seven-, and 10-year
hybrid adjustable rate mortgages (ARMs). The loans are
predominantly fully amortizing; however, 5% have a 10-year
interest-only (IO) period. The aggregate pool included loans
originated from first-time contributor EverBank (37%), First
Republic Bank (7%), PrimeLending (6%), Fremont Bank (6%), Flagstar
Bank, F.S.B. (6%) and Rockland Trust Company (5%). The remainder
of the mortgage loans was originated by various mortgage lending
institutions, each of which contributed less than 5% to the
transaction.

As of the cut-off date, the aggregate pool consisted of 511 loans
with a total balance of $397,881,280; an average balance of
$778,633; a weighted average original combined loan-to-value ratio
(CLTV) of 67.7%, and a weighted average coupon (WAC) of 4%.
Rate/Term and cash out refinances account for 60% and 6.6% of the
loans, respectively. The weighted average original FICO credit
score of the pool is 769. Owner-occupied properties comprise 94.9%
of the loans. The states that represent the largest geographic
concentration are California (42.9%), Texas (13.2%) and
Massachusetts (9.6%).


SHINNECOCK CLO: S&P Raises Rating on Class E Notes to 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the class
A-2, B, C, D, and E notes from Shinnecock CLO 2006-1 Ltd., a
collateralized loan obligation (CLO) transaction currently managed
by Clinton Group Inc.  At the same time, S&P affirmed the ratings
on the class A-1 notes.

"The rating actions follow our performance review of Shinnecock
CLO 2006-1 Ltd. and reflect an improvement in credit quality
available to support the notes since our January 2011 rating
actions, when we raised our ratings on six classes of notes.  For
our analysis, we assumed two obligors (Texas Competitive Electric
Holdings Co. LLC and Hibu PLC) were nonperforming, for a total of
$2.55 million of defaulted assets in the portfolio.  We recently
lowered our ratings on these obligors to 'CC.'.  The $2.55 million
in defaulted assets is down from $5.96 million noted in the
Dec. 10, 2010, trustee report, which we referenced for our
January 2011 rating actions.  Furthermore, assets from obligors
rated in the 'CCC' category were reported at $11.3 million in
November 2012, compared with $17.2 million in December 2010," S&P
said.

"Another positive factor in our analysis is the increase in the
weighted-average spread to 3.6% from 3.0% since our last rating
action.  Also, we observed absolute increases in the senior and
mezzanine overcollateralization (O/C) ratios of 1.8% and 1.6%
respectively.  The transaction ended its reinvestment period in
October 2012," S&P added.

"We affirmed our rating on the class A-1 notes to reflect our
belief that the credit support available is commensurate with the
current rating," S&P said.

"We will continue to review our ratings on the notes and assess
whether, in our view, the ratings remain consistent with the
credit enhancement available to support them and take rating
actions as we deem necessary," S&P noted.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

RATING ACTIONS

Shinnecock CLO 2006-1 Ltd.
                                Rating
Class                  To              From
A-2                     AAA (sf)     AA+ (sf)
B                        AA+ (sf)     AA- (sf)
C                        A (sf)        BBB+ (sf)
D                        BBB- (sf)    BB+ (sf)
E                        BB+ (sf)      B+ (sf)

RATING AFFIRMED

Shinnecock CLO 2006-1 Ltd.

Class                   Rating
A-1                      AAA (sf)


SPARKS REGIONAL: Moody's Affirms 'B2' Rating on Term Certs.
-----------------------------------------------------------
Moody's Investors Service affirmed the ratings of two certificates
of Sparks Regional Medical Center Lease Certificates of
Participation Series 2002 as follows:

Term certificates due June 15, 2017, Affirmed at B1 (sf);
previously on Mar 31, 2010 Upgraded to B1 (sf)

Term certificates due June 15, 2022, Affirmed at B2 (sf);
previously on Mar 31, 2010 Upgraded to B2 (sf)

Ratings Rationale

The rating of the certificates due June 15, 2017 is affirmed at B1
(sf) based on the current rating of Health Management Associates,
Inc. (HMA; Corporate Family Rating B1; stable outlook), which
acquired substantially all of the assets of Sparks Regional
Medical Center (Sparks), the original lessee of the facilities
supporting the transaction. The second certificate is rated lower
than HMA's rating because HMA's primary lease term expires prior
to the final payment date of the second certificate and the
balloon payment is guaranteed by a non-rated entity. The rating of
this class is affirmed at B2 (sf).

The principal methodology used in this rating was "Commercial Real
Estate Finance: Moody's Approach to Rating Credit Tenant Lease
Financings" published in November 2011.

There was no model used in the analysis of this transaction.

Moody's ratings are determined by a committee process that
considers both quantitative and qualitative factors.

The rating action is a result of Moody's on-going surveillance of
commercial mortgage backed securities (CMBS) transactions. Moody's
prior full review is summarized in a press release dated
February 9, 2012.

Deal Performance

As of the January 3, 2013 remittance statement, the transaction's
aggregate Certificate balance was $24.7 million compared to $37.2
million at securitization. The transaction currently consists of
two Certificates which are due June 15, 2017 and June 15, 2022.
The Certificates evidence proportionate undivided interests in 19
medical facilities which were originally leased to Sparks. On
December 1, 2009, HMA acquired substantially all of Sparks assets,
including the assignment of Sparks' interest under the lease
supporting this transaction. The lease expires on June 30, 2017,
subject to a five-year extension option.

The scheduled lease payments are sufficient to completely pay off
the Certificate due June 2017. Because there still will be an
outstanding balance for the Certificates due June 2022 at the end
of the tenant's initial lease term, the transaction was structured
with a residual value insurance policy issued by R.V.I. America
Insurance Company (RVI). The policy is for $10,750,000, which is
the principal amount of the Certificates due June 2022. On
February 4, 2009, Moody's downgraded RVI's financial strength
rating to Baa3 from A3 and subsequently withdrew the rating. The
rating on the Certificates due June 2022 is notched down from
HMA's rating due to the size of the loan balance at maturity
relative to the value of the collateral assuming the existing
tenant is no longer in occupancy (the "dark" value).


TARGETED RETURN: S&P Withdraws 'B+' Rating on HY 2006-1 Bonds
-------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its rating on Targeted
Return Index Securities Trust Series HY 2006-1, a small-basket
transaction that comprises corporate bonds.

The rating withdrawal follows the redemption of the notes on
Dec. 19, 2012.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATING WITHDRAWN

Targeted Return Index Securities Trust Series HY 2006-1

Rating

Class        To      From
Certs        NR      B+ (sf)

NR-Not rated.


TRAPEZA CDO II: S&P Puts 'BB+' Rating on A1B Notes on CreditWatch
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on four
tranches from two U.S. cash flow trust preferred transactions on
CreditWatch with positive implications.

The affected tranches are from cash flow trust preferred
transactions backed by banks and insurance companies.  These
tranches had an original issuance amount of $329 million.

"We will resolve [the] CreditWatch placements after we complete a
comprehensive cash flow analysis and committee review for each of
the affected transactions.  We expect to resolve these CreditWatch
placements within 90 days.  We will continue to monitor the CDO
transactions we rate and take rating actions, including
CreditWatch placements, as we deem appropriate," S&P said.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at
http://standardandpoorsdisclosure-17g7.com

RATINGS PLACED ON CREDITWATCH POSITIVE

Dekania CDO I Ltd.
                              Rating
Class               To                        From
A-1                 A+ (sf)/Watch Pos    A+ (sf)
A-2                 BBB+ (sf)/Watch Pos BBB+ (sf)
B                   BBB- (sf)/Watch Pos BBB- (sf)

Trapeza CDO II LLC
                            Rating
Class               To                       From
A1B                 BB+ (sf)/Watch Pos  BB+ (sf)


WACHOVIA BANK 2004-C15: S&P Cuts Ratings on 2 Note Classes to CCC-
------------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on four
"175WJ" raked certificate classes from Wachovia Bank Commercial
Mortgage Trust 2004-C15 (WBCMT 2004-C15), a U.S. commercial
mortgage-backed securities (CMBS) transaction.  Concurrently, S&P
lowered its ratings on 17 other classes from two U.S. CMBS
transactions and removed 12 of these ratings from CreditWatch with
negative implications.  Furthermore, S&P affirmed its ratings on
three other classes from WBCMT 2004-C15 and removed one of these
ratings from CreditWatch with negative implications.  In addition,
S&P affirmed its rating on one of the "175WJ" raked certificate
classes from WBCMT 2004-C15.  Lastly, S&P affirmed its ratings on
two classes from Banc of America Re-REMIC Trust 2010-UBER4 (BARR
2010-UBER4), a U.S. collateralized debt obligation (CDO)
transaction and removed both of these ratings from CreditWatch
with negative implications (see list).  The CreditWatch
resolutions are related to CreditWatch placements that S&P
initiated on
Sept. 5, 2012.

"The rating actions on the "175WJ" raked certificates follow our
revaluation of the 175 West Jackson office building securing the
fixed-rate note, which provides 100% of the cash flow for the
class "175WJ" raked certificates in the WBCMT 2004-C15
transaction.  The actions follow our review of the loan structure
and our recently updated criteria for rating U.S. and Canadian
CMBS transactions, which was the primary driver of the rating
actions.  Based on our analysis, we derived our sustainable in
place net cash flow, which was then divided by a capitalization
rate of 7.0% to determine our expected-case value.  This yielded a
loan-to-value (LTV) ratio of 63.3%," S&P said.

"The downgrades reflect our expected available credit enhancement
for the affected tranches, which we believe is less than our most
recent estimate of necessary credit enhancement for the most
recent rating levels.  The downgrades also reflect our views
regarding the current and future performance of the collateral
supporting the respective transactions," S&P noted.

"We affirmed our ratings on the principal and interest
certificates to reflect our expected available credit enhancement
for the affected tranches, which we believe will remain consistent
with the most recent estimate of necessary credit enhancement for
the current rating levels.  The affirmed ratings also acknowledge
our expectations regarding the current and future performance of
the collateral supporting the respective transaction," S&P added.

The affirmations of S&P's ratings on the interest-only (IO)
certificates reflect its current criteria for rating IO
securities.

"The affirmations of our ratings on classes A-4A and A-4B from
BARR 2010-UBER4 follow our review of the WBCMT 2004-C15
transaction.  The rating on the class A-4B certificates is
dependent on the lowest rated certificates of the underlying CMBS
transactions and, therefore, will correspond with the underlying
ratings," S&P noted.

"Today's rating actions follow a detailed review of the
performance of the collateral supporting the relevant securities
and transaction structures.  This review was similar to the review
we conducted before placing 744 U.S. and Canadian CMBS ratings on
CreditWatch following the release of our updated ratings criteria
for these transactions, but was more detailed with respect to
collateral and transaction performance.  For more information on
the analytic process we used for those CreditWatch placements,
refer to "The Application Of Standard & Poor's Revised U.S. And
Canadian CMBS Criteria For The Sept. 5, 2012, CreditWatch
Actions," published Sept. 5, 2012," S&P added.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17-g7 Disclosure Reports
included in this credit rating report are available at
http://standardandpoorsdisclosure-17g7.com

RATING AND CREDITWATCH ACTIONS

GS Mortgage Securities Corp. II
Commercial mortgage pass-through certificates series 2004-GG2

           Rating
Class     To         From            Credit enhancement (%)
E         BB+(sf)    BBB-(sf)/Watch Neg                5.77
F         CCC(sf)    B+(sf)                            4.30
G         D(sf)      CCC-(sf)                          3.01

Wachovia Bank Commercial Mortgage Trust
Commercial mortgage pass-through certificates series 2004-C15

           Rating
Class     To         From            Credit enhancement (%)
A-3       AAA(sf)    AAA(sf)                          20.84
A-4       AAA(sf)    AAA(sf)/Watch Neg                20.84
A-1A      AA-(sf)    AAA(sf)/Watch Neg                20.84
B         A(sf)      AA(sf)/Watch Neg                 16.44
C         A-(sf)     AA-(sf)/Watch Neg                14.53
D         BBB(sf)    A(sf)/Watch Neg                  11.65
E         BBB-(sf)   A-(sf)/Watch Neg                 10.12
F         BB(sf)     BBB(sf)/Watch Neg                 8.21
G         B+(sf)     BB+(sf)/Watch Neg                 6.49
H         CCC(sf)    BB(sf)/Watch Neg                  4.38
J         CCC-(sf)   BB-(sf)/Watch Neg                 3.42
K         CCC-(sf)   B+(sf)/Watch Neg                  2.85
L         D(sf)      B(sf)/Watch Neg                   2.28
M         D(sf)      CCC+(sf)                          1.89
N         D(sf)      CCC(sf)                           1.51
O         D(sf)      CCC-(sf)                          1.13
XC        AAA(sf)    AAA(sf)                            N/A
175WJ-A   BBB(sf)    BB(sf)                             N/A
175WJ-B   BB+(sf)    BB-(sf)                            N/A
175WJ-C   BB(sf)     B+(sf)                             N/A
175WJ-D   B+(sf)     B(sf)                              N/A
175WJ-E   B-(sf)     B-(sf)                             N/A

Banc of America Re-REMIC Trust 2010-UBER4 Commercial mortgage
pass-through certificates

           Rating
Class     To         From             Credit enhancement (%)
A-4A      AAA(sf)    AAA(sf)/Watch Neg                15.39
A-4B      A+(sf)     A+(sf)/Watch Neg                  0.00

N/A-Not Applicable.


* Fitch Says CMBS Delinquencies Down to 7.99% in December 2012
--------------------------------------------------------------
U.S. CMBS delinquencies closed out 2012 with seven straight months
of declines, while late-pays on office and retail loans bear close
watch this year, according to the latest index results from Fitch
Ratings.

CMBS delinquencies fell 18 basis points (bps) last month to 7.99%
from 8.17% a month earlier. In December, resolutions of
$1.7 billion outpaced additions to the index of $1 billion. In
addition, $4 billion in new Fitch-rated deals closed in December.
No loans over $100 million transferred into the index last month,
the second straight month this has occurred.

Multifamily, hotel, and industrial delinquency rates improved last
year.  Multifamily delinquencies dropped the most of any major
property type, beginning the year at 14.42% and falling 430 bps to
close out 2012 at 10.12%.  The second most-improved sector in 2012
was hotels, which began the year with delinquencies of 12.02% and
finished 315 bps lower at 8.87%.

Conversely, office loans were the poorest performers last year and
remain a cause for concern heading into 2013. Office delinquencies
began 2012 at 6.84% but rose 157 bps to close out the year at
8.41%. Retail also ended 2012 in worse shape than it started but
overall has remained the most stable property type.

Current and previous delinquency rates are as follows:

-- Multifamily: 10.12% (from 9.92% in November and 14.42% at
    year-end 2011)
-- Hotel: 8.87% (from 9.83% and 12.02%)
-- Industrial: 8.61% (from 8.88% and 10.25%)
-- Office: 8.41% (from 8.63% and 6.84%)
-- Retail: 7.14% (from 7.28% and 6.89%)


* Moody's Takes Rating Action on $85-Mil. Prime Jumbo RMBS
----------------------------------------------------------
Moody's Investors Service has downgraded the ratings of 13
tranches from four RMBS transactions issued by miscellaneous
issuers, backed by Prime loans, and issued between 2003 and 2004.

Complete rating actions are as follows:

Issuer: CHL Mortgage Pass-Through Trust 2004-J3

Cl. A-4, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba1 (sf)

Cl. A-7, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba1 (sf)

Cl. PO, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba1 (sf)

Issuer: First Horizon Mortgage Pass-Through Trust 2004-AR5

Cl. I-A-1, Downgraded to B1 (sf); previously on Apr 18, 2012
Downgraded to Ba3 (sf)

Cl. II-A-1, Downgraded to B2 (sf); previously on Apr 18, 2012
Downgraded to Ba3 (sf)

Issuer: Merrill Lynch Mortgage Investors Trust MLCC 2004-HB1

Cl. A-1, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba1 (sf)

Cl. A-2, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba1 (sf)

Cl. A-3, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba2 (sf)

Cl. X-A, Downgraded to Ba3 (sf); previously on Apr 13, 2012
Downgraded to Ba1 (sf)

Cl. B-1, Downgraded to Caa2 (sf); previously on Apr 18, 2011
Downgraded to B3 (sf)

Cl. X-B, Downgraded to Caa3 (sf); previously on Apr 13, 2012
Confirmed at Caa2 (sf)

Issuer: Merrill Lynch Mortgage Investors, Inc. 2003-A6

Cl. M-1, Downgraded to Caa2 (sf); previously on Apr 13, 2012
Downgraded to Caa1 (sf)

Cl. M-2, Downgraded to Ca (sf); previously on Apr 18, 2011
Downgraded to Caa2 (sf)

Ratings Rationale

The actions are a result of the recent performance of Prime jumbo
pools originated before 2005 and reflect Moody's updated loss
expectations on the pools. The downgrades are a result of
deteriorating performance and structural features resulting in
higher expected losses for certain bonds than previously
anticipated.

The methodologies used in these ratings were "Moody's Approach to
Rating US Residential Mortgage-Backed Securities" published in
December 2008, and "Pre-2005 US RMBS Surveillance Methodology"
published in January 2012. The methodology used in rating
interest-only securities was "Moody's Approach to Rating
Structured Finance Interest-Only Securities" published in February
2012.

Moody's adjusts the methodologies noted above for 1) Moody's
current view on loan modifications and 2) small pool volatility

Loan Modifications

As a result of an extension of the Home Affordable Modification
Program (HAMP) to 2013 and an increased use of private
modifications, Moody's is extending its previous view that loan
modifications will only occur through the end of 2012. It is now
assuming that the loan modifications will continue at current
levels until the end of 2013.

Small Pool Volatility

To project losses on prime jumbo pools with fewer than 100 loans,
Moody's first calculates an annualized delinquency rate based on
vintage, number of loans remaining in the pool and the level of
current delinquencies in the pool. For prime jumbo pools
originated before 2005, Moody's first applies a baseline
delinquency rate of 3.0%. Once the loan count in a pool falls
below 76, this rate of delinquency is increased by 1% for every
loan fewer than 76. For example, for a pool with 75 loans, the
adjusted rate of new delinquency would be 3.03%. In addition, if
current delinquency levels in a small pool is low, future
delinquencies are expected to reflect this trend. To account for
that, the rate calculated above is multiplied by a factor ranging
from 0.75 to 2.5 for current delinquencies ranging from less than
2.5% to greater than 10% respectively. Delinquencies for
subsequent years and ultimate expected losses are projected using
the approach described in the methodology publication.

The primary source of assumption uncertainty is the uncertainty in
Moody's central macroeconomic forecast and performance volatility
due to servicer-related issues. The unemployment rate fell from
9.0% in September 2011 to 7.7% in November 2012. Moody's forecasts
a further drop to 7.5% by 2014. Moody's expects house prices to
drop another 1% from their 4Q2011 levels before gradually rising
towards the end of 2013. Performance of RMBS continues to remain
highly dependent on servicer procedures. Any change resulting from
servicing transfers or other policy or regulatory change can
impact the performance of these transactions.

A list of these actions including CUSIP identifiers may be found
at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF312507

A list of updated estimated pool losses, sensitivity analysis, and
tranche recovery details is being posted on an ongoing basis for
the duration of this review period and may be found at:

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF243269


* Moody's Cuts Ratings on 11 Tranches From Subprime RMBS
--------------------------------------------------------
Moody's Investors Service has downgraded the ratings on 11
tranches and upgraded the ratings on 16 tranches from 23 subprime
RMBS transactions issued by various financial institutions. The
collateral backing these transactions are subprime residential
mortgage loans.

Complete rating actions are as follows:

Issuer: IXIS Real Estate Capital Trust 2006-HE1

Cl. A-3, Downgraded to Ca (sf); previously on Aug 2, 2010
Downgraded to Caa2 (sf)

Issuer: IXIS Real Estate Capital Trust 2006-HE3

Cl. A-2, Downgraded to Ca (sf); previously on Aug 2, 2010
Downgraded to Caa2 (sf)

Issuer: J.P. Morgan Mortgage Acquisition Corp. 2006-WMC1

Cl. A-1, Upgraded to Ba3 (sf); previously on Dec 28, 2010 Upgraded
to B3 (sf)

Cl. A-4, Upgraded to Ba2 (sf); previously on Dec 28, 2010 Upgraded
to Caa3 (sf)

Issuer: Long Beach Mortgage Loan Trust 2006-WL1

Cl. I-A1, Upgraded to B3 (sf); previously on Apr 30, 2010
Downgraded to Caa1 (sf)

Cl. I-A3, Upgraded to Caa1 (sf); previously on Apr 30, 2010
Downgraded to Caa3 (sf)

Cl. II-A3, Upgraded to B3 (sf); previously on Apr 30, 2010
Downgraded to Caa1 (sf)

Cl. II-A4, Upgraded to Caa1 (sf); previously on Apr 30, 2010
Downgraded to Ca (sf)

Issuer: Long Beach Mortgage Loan Trust 2006-WL3

Cl. II-A3, Upgraded to Ba1 (sf); previously on Apr 30, 2010
Downgraded to B1 (sf)

Issuer: MASTR Asset Backed Securities Trust 2005-NC2

Cl. A-3, Downgraded to Caa3 (sf); previously on May 5, 2010
Downgraded to Caa2 (sf)

Issuer: MASTR Asset Backed Securities Trust 2006-HE4

Cl. A-1, Downgraded to Ca (sf); previously on May 5, 2010
Downgraded to Caa2 (sf)

Issuer: MASTR Asset Backed Securities Trust 2006-HE5

Cl. A-2, Downgraded to Ca (sf); previously on May 5, 2010
Downgraded to Caa2 (sf)

Issuer: Morgan Stanley ABS Capital I Inc. Trust 2006-HE2

Cl. A-1, Upgraded to B3 (sf); previously on Jul 15, 2010
Downgraded to Caa2 (sf)

Issuer: Morgan Stanley ABS Capital I Inc. Trust 2007-HE4

Cl. A-2a, Downgraded to Ca (sf); previously on Dec 28, 2010
Upgraded to Caa2 (sf)

Issuer: Morgan Stanley ABS Capital I Inc. Trust 2007-HE5

Cl. A-2a, Downgraded to Ca (sf); previously on Jul 15, 2010
Downgraded to Caa2 (sf)

Issuer: Morgan Stanley IXIS Real Estate Capital Trust 2006-2

Cl. A-1, Downgraded to Ca (sf); previously on Dec 28, 2010
Downgraded to Caa2 (sf)

Issuer: Nomura Home Equity Loan Trust 2006-FM1

Cl. I-A, Upgraded to B1 (sf); previously on Aug 13, 2010
Downgraded to B3 (sf)

Issuer: RAMP Series 2006-RS4 Trust

Cl. A-4, Upgraded to Ca (sf); previously on Apr 6, 2010 Downgraded
to C (sf)

Issuer: RAMP Series 2006-RS5 Trust

Cl. A-4, Upgraded to Ca (sf); previously on Apr 6, 2010 Downgraded
to C (sf)

Issuer: RASC Series 2006-EMX2 Trust

Cl. A-3, Upgraded to Caa2 (sf); previously on Apr 6, 2010
Downgraded to Ca (sf)

Issuer: RASC Series 2006-EMX3 Trust

Cl. A-3, Upgraded to Ca (sf); previously on Apr 6, 2010 Downgraded
to C (sf)

Issuer: Securitized Asset Backed Receivables LLC Trust 2006-HE2

Cl. A-2B, Downgraded to Ca (sf); previously on Jul 8, 2010
Downgraded to Caa2 (sf)

Issuer: Structured Asset Investment Loan Trust 2006-2

Cl. A3, Upgraded to B3 (sf); previously on Apr 12, 2010 Downgraded
to Caa2 (sf)

Issuer: Structured Asset Investment Loan Trust 2006-BNC1

Cl. A4, Upgraded to B3 (sf); previously on Apr 12, 2010 Downgraded
to Caa2 (sf)

Issuer: Structured Asset Securities Corp Trust 2006-BC1

Cl. A5, Upgraded to Ba2 (sf); previously on Apr 12, 2010
Downgraded to B1 (sf)

Issuer: WaMu Asset-Backed Certificates, WaMu Series 2007-HE2 Trust

Cl. II-A1, Downgraded to Ca (sf); previously on Aug 13, 2010
Downgraded to Caa2 (sf)

Issuer: Washington Mutual Asset-Backed Certificates, WMABS Series
2006-HE5 Trust

Cl. II-A-1, Downgraded to C (sf); previously on Jul 16, 2010
Downgraded to Caa2 (sf)

RATINGS RATIONALE

The actions are a result of the recent performance of Subprime
pools originated after 2005 and reflect Moody's updated loss
expectations on these pools. The upgrades/downgrades in the rating
action are a result of improving/deteriorating performance and/or
structural features resulting in lower/higher expected losses for
certain bonds than previously anticipated.

The methodologies used in these ratings were "Moody's Approach to
Rating US Residential Mortgage-Backed Securities" published in
December 2008, and "2005 -- 2008 US RMBS Surveillance Methodology"
published in July 2011.

Moody's adjusts the methodologies noted above for Moody's current
view on loan modifications As a result of an extension of the Home
Affordable Modification Program (HAMP) to 2013 and an increased
use of private modifications, Moody's is extending its previous
view that loan modifications will only occur through the end of
2012. It is now assuming that the loan modifications will continue
at current levels until the end of 2013.

To assess the rating implications of the updated loss levels on
subprime RMBS, each individual pool was run through a variety of
scenarios in the Structured Finance Workstation(R) (SFW), the cash
flow model developed by Moody's Wall Street Analytics. This
individual pool level analysis incorporates performance variances
across the different pools and the structural features of the
transaction including priorities of payment distribution among the
different tranches, average life of the tranches, current balances
of the tranches and future cash flows under expected and stressed
scenarios. The scenarios include ninety-six different combinations
comprising of six loss levels, four loss timing curves and four
prepayment curves. The volatility in losses experienced by a
tranche due to extended foreclosure timelines by servicers is
taken into consideration when assigning ratings.

The above methodology only applies to pools with at least 40 loans
and a pool factor of greater than 5%. Moody's may withdraw its
rating when the pool factor drops below 5% and the number of loans
in the pool declines to 40 loans or lower unless specific
structural features allow for a monitoring of the transaction
(such as a credit enhancement floor).

The primary sources of assumption uncertainty are Moody's central
macroeconomic forecast and performance volatility as a result of
servicer-related activity such as modifications. The unemployment
rate fell from 8.5% in December 2011 to 7.8% in December 2012.
Moody's forecasts a unemployment central range of 7.5 to 8.0 for
the 2013 year. Moody's expects housing prices to gradually rise
towards the end of 2013. Performance of RMBS continues to remain
highly dependent on servicer activity such as modification-related
principal forgiveness and interest rate reductions. Any change
resulting from servicing transfers or other policy or regulatory
change can also impact the performance of these transactions.

A list of these actions including CUSIP identifiers may be found
at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF312865

A list of updated estimated pool losses, sensitivity analysis, and
tranche recovery details is being posted on an ongoing basis for
the duration of this review period and may be found at:

http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_SF198689


* S&P Lowers Rating on 5 Classes from 3 CMBS Transactions to 'D'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on five
classes of commercial mortgage pass-through certificates from two
U.S. commercial mortgage-backed securities (CMBS) transactions due
to principal losses, as well as current and potential future
interest shortfalls.

"We lowered our ratings on three classes to 'D (sf)' because of
principal losses that these classes incurred.  We also lowered our
ratings on two other classes to 'D (sf)' because we expect the
accumulated interest shortfalls to remain outstanding for the
foreseeable future," S&P said.

The recurring interest shortfalls for the respective certificates
are primarily due to one or more of the following factors:

   -- Appraisal subordinate entitlement reduction (ASER) amounts
      in effect for specially serviced assets; and

   -- Special servicing fees.

Standard & Poor's analysis primarily considered the ASER amounts
based on appraisal reduction amounts (ARAs) calculated using
recent Member of the Appraisal Institute (MAI) appraisals.  S&P
also considered special servicing fees that are likely, in its
view, to cause recurring interest shortfalls.

The servicer implements ARAs and resulting ASER amounts in
accordance with each respective transaction's terms.  Typically,
these terms call for the automatic implementation of an ARA equal
to 25% of the stated principal balance of a loan when a loan is 60
days past due and an appraisal or other valuation is not available
within a specified timeframe.  S&P primarily considered ASER
amounts based on ARAs calculated from MAI appraisals when deciding
which classes from the affected transactions to downgrade to 'D
(sf)'.  This is because ARAs based on a principal balance haircut
is highly subject to change, or even reversal, once the special
servicer obtains the MAI appraisals.

S&P detail the five downgraded classes from the three U.S. CMBS
transactions below.

Banc of America Commercial Mortgage Trust 2007-5

S&P lowered its ratings to 'D (sf)' on the class J certificates
because of principal losses resulting from the liquidation of one
asset that was with the special servicer, C-III Asset Management
LLC.  According to the Jan. 10, 2013, remittance report, the trust
experienced $9 million in principal losses upon the recent
disposition of the Holiday Inn San Antonio asset.  The class J
certificate experienced a loss of 27.4% of its $16.3 million
opening principal balance.  The class K certificate also
experienced losses that reduced the class' outstanding balance to
zero.  Standard & Poor's had previously lowered its rating on the
class K certificate to 'D (sf)'.

Bear Stearns Commercial Mortgage Securities Trust 2007-PWR17

The downgrade reflects principal losses that class H incurred, as
detailed in the Jan. 11, 2013, trustee remittance report.  S&P
attributes the aggregate principal losses, which totaled
$11.5 million, to two assets: ANC - 1301 & 1401 GV Parkway and
Bridgeport Apartments.  Consequently, class H incurred a 6.6% loss
of its $36.7 million beginning principal balance.  The class J
notes also experienced principal losses that reduced the class'
outstanding balance to zero.  Standard & Poor's previously lowered
its rating on class J to 'D (sf)'.

Bear Stearns Commercial Mortgage Securities Trust 2007-TOP28

S&P lowered its ratings to 'D (sf)' on the class O certificates
because of principal losses resulting from the liquidation of one
asset that was with the special servicer, C-III Asset Management
LLC.  According to the Jan. 11, 2013, remittance report, the trust
experienced $2.1 million in principal losses upon the recent
disposition of the Union Walk asset. The class O certificate
experienced a loss of 41.5% of its $2.2 million beginning
principal balance.  The class P certificate also experienced
losses that reduced the class' outstanding balance to zero.  S&P
do not rate the class P certificate.

S&P also lowered its ratings on classes M and N.  S&P lowered its
ratings on these classes to 'D (sf)' due to accumulated interest
shortfalls that it expects will remain outstanding for an extended
period of time and the increased susceptibility to future interest
shortfalls due to the reduced liquidity support available to these
certificates.  As of the Jan. 11, 2013, trustee remittance report,
ARAs totaling $10.7 million were in effect for five
($32.5 million, 2.1%) of the transaction's seven ($45.9 million,
2.9%) assets that are with the special servicer.  The ARAs are
inclusive of the Union Walk asset which liquidated in the current
period.  The current interest shortfalls primarily resulted from
ASER amounts and special servicing fees.  The total reported net
ASER amount was $48,155, which included recovered ASERs of
$104,850.  The reported cumulative ASER amount was $394,979.
Standard & Poor's considered the four ASER amounts, which were
based on MAI appraisals, as well as current special servicing fees
($3,602) in determining its rating actions.  The reported monthly
interest shortfalls totaled $52,853, which included a recovery of
$112,478, affected all of the classes subordinate to and including
class H.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at
http://standardandpoorsdisclosure-17g7.com

RATINGS LOWERED

Banc of America Commercial Mortgage Trust 2007-5
Commercial mortgage pass-through certificates series 2007-5

                                          Reported
         Rating               Credit   Interest shortfalls

Class  To         From       enhcmt(%)  Current  Accumulated
J      D(sf)      CCC-(sf)           0   (81,333)          0


Bear Stearns Commercial Mortgage Securities Trust 2007-PWR17

                                          Reported
         Rating               Credit   Interest shortfalls

Class  To         From       enhcmt(%)  Current  Accumulated
H      D(sf)      CCC-(sf)           0   (76,061)          0


Bear Stearns Commercial Mortgage Securities Trust 2007-TOP28

                                          Reported
         Rating                Credit   Interest shortfalls
Class  To         From       enhcmt(%)  Current  Accumulated

M      D(sf)      CCC-(sf)        0.37    19,025      76,099
N      D(sf)      CCC-(sf)        0.08    19,025      76,099
O      D(sf)      CCC-(sf)           0     9,514      38,058


* S&P Takes Action on 16 Classes From Four U.S. CMBS Transactions
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on two
classes from two U.S. commercial mortgage-backed securities (CMBS)
transactions and removed these ratings from CreditWatch with
positive implications.  Concurrently, S&P lowered its ratings on
four classes from two U.S. CMBS transactions and removed one of
them from CreditWatch with negative implications.  Finally, S&P
affirmed its ratings on 10 classes from three U.S. CMBS
transactions and removed one rating from CreditWatch with positive
implications and removed another rating from CreditWatch with
negative implications (see list).  The CreditWatch resolutions
are related to CreditWatch placements that occurred on Sept. 5,
2012.

The upgrades, including the raising of S&P's rating on class E
from Morgan Stanley Dean Witter Capital I Trust's series 2002-IQ2
to 'AAA (sf)', reflect Standard & Poor's expected available credit
enhancement for the affected tranches, which S&P believes is
greater than our most recent estimate of necessary credit
enhancement for the most recent rating levels.  The upgrades
also reflect S&P's views regarding the current and future
performance of the collateral supporting the respective
transactions.

"The downgrades reflect our expected available credit enhancement
for the affected tranches, which we believe is less than our most
recent estimate of necessary credit enhancement for the most
recent rating levels.  The downgrades also reflect our views
regarding the current and future performance of the collateral
supporting the respective transactions as well as the liquidity
available to the affected tranches," S&P said.

The affirmations of S&P's ratings on the principal and interest
certificates primarily reflect our expected available credit
enhancement for the affected tranches, which S&P believes will
remain consistent with the most recent estimate of necessary
credit enhancement for the current rating levels.  The affirmed
ratings also acknowledge S&P's expectations regarding the current
and future performance of the collateral supporting the respective
transactions.

S&P affirmed its ratings on the interest only (IO) certificates
reflect its current criteria for rating IO securities.

The rating actions follow a detailed review of the performance of
the collateral supporting the relevant securities and transaction
structures.  This review was similar to the review S&P conducted
before placing 744 U.S. and Canadian CMBS ratings on CreditWatch
following the release of its updated ratings criteria for these
transactions, but was more detailed with respect to collateral and
transaction performance.  For more information on the analytic
process S&P used for those CreditWatch placements, refer to "The
Application Of Standard & Poor's Revised U.S. And Canadian CMBS
Criteria For The Sept. 5, 2012 CreditWatch Actions," published
Sept. 5, 2012.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17-g7 Disclosure Reports
included in this credit rating report are available at
http://standardandpoorsdisclosure-17g7.com

RATING AND CREDITWATCH ACTIONS

Merrill Lynch Mortgage Trust 2004-BPC1
Commercial mortgage pass-through certificates series 2004-BPC1

           Rating
Class     To            From           Credit enhancement (%)

A-4       AAA (sf)    AAA (sf)                31.85
A-5       AAA (sf)    AAA (sf)                31.85
A-1-A     AAA (sf)    AAA (sf)                31.85
A-J       AA (sf)     AAA (sf)/Watch Neg      18.56
B         BBB+ (sf)   BBB+                    14.86
C         BBB- (sf)   BBB- (sf)               13.12
D         B+ (sf)     B+ (sf)                 10.50
E         CCC+ (sf)   CCC+ (sf)                9.20
XC        AAA (sf)    AAA (sf)                  N/A

Merrill Lynch Mortgage Trust
Commercial mortgage pass-through certificates series 2002-MW1

           Rating
Class     To        From          Credit enhancement (%)
G         A+ (sf)   BBB+ (sf)/Watch Pos     90.36
H         BBB- (sf) BBB- (sf)/Watch Pos     64.75
J         B+ (sf)   BB (sf)                 42.81
K         CCC (sf)  B+ (sf)                 35.49
L         CCC- (sf) B (sf)                  24.51

Morgan Stanley Capital I Inc.
Commercial mortgage pass-through certificates series 1998-WF1

           Rating
Class     To        From          Credit enhancement (%)
K         BB (sf)   BB (sf)/Watch Neg       62.64

Morgan Stanley Dean Witter Capital I Trust 2002-IQ2
Commercial mortgage pass-through certificates series 2002-IQ2

           Rating
Class     To        From          Credit enhancement (%)

E         AAA (sf)  AA-/Watch Pos           94.50

N/A-Not applicable.


* S&P Puts Rating on 42 Tranches From 11 CLO Deals on CreditWatch
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on 42
tranches from 11 U.S. collateralized loan obligation (CLO) and
corporate collateralized debt obligation (CDO) transactions on
CreditWatch with positive implications (see list).

The affected tranches are from CLO and CDO transactions backed by
securities issued by corporate obligors.  These tranches had an
original issuance amount of $4.255 billion.

Of the 11 transactions with ratings placed on CreditWatch,seven
have exited their reinvestment period and have commenced the
process of paying down the notes.

"We will resolve [the] CreditWatch placements after we complete a
comprehensive cash flow analysis and committee review for each of
the affected transactions.  We expect to resolve these CreditWatch
placements within 90 days.  We will continue to monitor the CDO
transactions we rate and take rating actions, including
CreditWatch placements, as we deem appropriate," S&P said.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at
http://standardandpoorsdisclosure-17g7.com

RATINGS PLACED ON CREDITWATCH POSITIVE

AMMC VII Ltd.
                            Rating
Class               To                    From
A                   AA+ (sf)/Watch Pos    AA+ (sf)
B                   AA (sf)/Watch Pos     AA (sf)
C                   A (sf)/Watch Pos      A (sf)
D                   BBB (sf)/Watch Pos    BBB (sf)
E                   BB+ (sf)/Watch Pos    BB+ (sf)

Ares Enhanced Loan Investment Strategy III Ltd.

                            Rating
Class               To                     From
A                    AA+ (sf)/Watch Pos    AA+ (sf)

Canyon Capital CLO 2004-1 Ltd.

                            Rating
Class               To                     From
B                   AA- (sf)/Watch Pos     AA- (sf)
C                   BBB- (sf)/Watch Pos    BBB- (sf)
D                   BB- (sf)/Watch Pos     BB- (sf)

FriedbergMilstein Private Capital Fund I

                            Rating
Class               To                      From
D-1                 BB+ (sf)/Watch Pos     BB+ (sf)
D-2                 BB+ (sf)/Watch Pos     BB+ (sf)

Halcyon Structured Asset Management Long Secured/Short Unsecured
2007-2 Ltd.

                            Rating
Class               To                    From
A-1a                AA+ (sf)/Watch Pos    AA+ (sf)
A-1b                AA+ (sf)/Watch Pos    AA+ (sf)
A-2                 AA- (sf)/Watch Pos    AA- (sf)
B                   A- (sf)/Watch Pos     A- (sf)
C                   BBB- (sf)/Watch Pos   BBB- (sf)

KKR Financial CLO 2007-A Ltd

                            Rating
Class               To                    From
A                   AA+ (sf)/Watch Pos    AA+ (sf)

Marathon CLO I Ltd.

                            Rating
Class               To                    From
D                   BBB+ (sf)/Watch Pos   BBB+ (sf)

Tricadia CDO 2003-1 Ltd

                            Rating
Class               To                    From
A-1LB               A- (sf)/Watch Pos     A- (sf)
A-2L                A- (sf)/Watch Pos     A- (sf)
A-3L                BB+ (sf)/Watch Pos    BB+ (sf)
A-4L                B (sf)/Watch Pos      B (sf)

Waterfront CLO 2007-1 Ltd

                            Rating
Class               To                    From
A-1                 AA+ (sf)/Watch Pos    AA+ (sf)
A-2                 AA- (sf)/Watch Pos    AA- (sf)
A-3                 A+ (sf)/Watch Pos     A+ (sf)
B                   BBB+ (sf)/Watch Pos   BBB+ (sf)
C                   BBB- (sf)/Watch Pos   BBB- (sf)
D                   BB (sf)/Watch Pos     BB (sf)

Wind River CLO II - Tate Investors Ltd.

                            Rating
Class               To                    From
A-1                 AA+ (sf)/Watch Pos    AA+ (sf)
A-2                 AA- (sf)/Watch Pos    AA- (sf)
B-1                 BBB+ (sf)/Watch Pos   BBB+ (sf)
B-2                 BBB+ (sf)/Watch Pos   BBB+ (sf)
C                   B+ (sf)/Watch Pos     B+ (sf)
D-1                 CCC- (sf)/Watch Pos   CCC- (sf)
D-2                 CCC- (sf)/Watch Pos   CCC- (sf)
Type 1 Cp           CCC- (sf)/Watch Pos   CCC- (sf)

Zais Investment Grade Ltd. X

                            Rating
Class               To                    From

A-1a FUNDED         BBB+ (sf)/Watch Pos   BBB+ (sf)
A-1b                BBB+ (sf)/Watch Pos   BBB+ (sf)
A-2                 BBB- (sf)/Watch Pos   BBB- (sf)
A-3                 BB+ (sf)/Watch Pos    BB+ (sf)
A-4                 BB- (sf)/Watch Pos    BB- (sf)
S                   A+ (sf)/Watch Pos     A+ (sf


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
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than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
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related conferences are encouraged.  Send announcements to
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On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts.  The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

The Sunday TCR delivers securitization rating news from the week
then-ending.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                           *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
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Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
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Cecil R. Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, Carlo
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Copyright 2013.  All rights reserved.  ISSN: 1520-9474.

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                  *** End of Transmission ***