Standard & Poor''s Ratings
Services today lowered its ratings on 14 tranches of two Asia-Pacific cash
flow CDO of ABS transactions; Raffles Place II Funding Ltd. and Singa
Funding Ltd. (see list).
The total issuance amount of the 14 downgraded tranches is approximately US$2 billion.
All lowered tranche ratings were on CreditWatch with negative implications
prior to today''s rating actions. The actions on the CDO ratings were taken
as a result of credit deterioration in the underlying CDO portfolios, which
consist primarily of residential mortgage-backed securities (RMBS) backed
by U.S. mortgages and of tranches from other CDO transactions.
Today''s CDO downgrades reflect a number of factors, including credit
deterioration and recent negative rating actions on U.S. subprime RMBS
securities (see "S&P Takes Action On 6,389 U.S. Subprime RMBS Ratings And
1,953 CDO Ratings," published Jan. 30, 2008, on RatingsDirect). They also
reflect changes that Standard & Poor''s has made to the recovery rate and
correlation assumptions it uses to assess U.S. RMBS held within CDO
collateral pools (see "Correlation And Recovery Assumptions Revised For
CDOs Of ABS Backed By RMBS," published Feb. 4, 2008, on RatingsDirect).
Standard & Poor''s will continue to monitor the CDO transactions it rates
and take rating actions when appropriate. Additionally, Standard & Poor''s
will continue to review its current criteria assumptions in light of the
recent performance of RMBS assets and CDOs. For information on Standard &
Poor''s residential mortgage-related rating actions on U.S. CDO
transactions, please visit RatingsDirect at www.ratingsdirect.com or
www.spviews.com, which is Standard & Poor''s special website for subprime
related issues. Transaction Class Rating to From Raffles Place II Funding
Ltd. A-1M CCC AAA/Watch Neg Raffles Place II Funding Ltd. A-1Q CCC
AAA/Watch Neg Raffles Place II Funding Ltd. A-2 CCC- AAA/Watch Neg Raffles
Place II Funding Ltd. A-3 CC AAA/Watch Neg Raffles Place II Funding Ltd.
A-4 CC A+/Watch Neg Raffles Place II Funding Ltd. B CC BBB/Watch Neg
Raffles Place II Funding Ltd. C1 CC BBB-/Watch Neg Raffles Place II Funding
Ltd. C2 CC BB/Watch Neg Singa Funding Ltd. A-1M CCC AAA/Watch Neg Singa
Funding Ltd. A-1Q CCC AAA/Watch Neg Singa Funding Ltd. A-2 CCC- AAA/Watch
Neg Singa Funding Ltd. A-3 CC AA-/Watch Neg Singa Funding Ltd. A-4 CC
A-/Watch Neg Singa Funding Ltd. B CC BBB-/Watch Neg
Ratings are statements of opinion, not statements of fact or
recommendations to buy, hold, or sell any securities. Standard & Poor''s
(Australia) Pty. Ltd. does not hold an Australian financial services
license under the Corporations Act 2001. Any rating and the information
contained in any research report published by Standard & Poor''s is of a
general nature. It has been prepared without taking into account any
recipient''s
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