August 5, 2013 / 8:40 AM / 4 years ago

RPT-Fitch Downgrades Equinox (Eclipse 2006-1) Class D Notes to 'Dsf'

Aug 5 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has downgraded Equinox (Eclipse 2006-1) plc’s class D commercial mortgage-backed notes as follows:

GBP10.7m class D (XS0259280591) downgraded to ‘Dsf’ from ‘Csf’; Recovery Estimate 0%

KEY RATING DRIVERS

The downgrade of the class D notes reflects the GBP10.2m allocation of loss to the class D notes on the July 2013 interest payment date (IPD). This follows the sale of the two remaining properties securing the Macallan Potfolio loan. Net recoveries from the remaining two properties were GBP0.75m, resulting in a GBP17.9m loan level loss, equivalent to 44% of the original securitised balance of GBP40.6m. This GBP17.9m loss was allocated reverse sequentially to the notes, resulting in a full write-down of the class E notes, and a partial write-down of the class D notes.

RATING SENSITIVITIES

The GBP10.2m loss allocation to the class D notes represented 49% of its outstanding balance. Fitch believes that the eventual resolution of a number of other loans within the portfolio will eventually lead this tranche to being fully written-down to zero.

Fitch will continue to monitor the performance of the transaction.

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