Fitch Affirms Capital Trust 2004-1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings affirms four classes of Capital Trust RE CDO 2004-1 (Capital Trust 2004-1). A detailed list of rating actions follows at the end of this release.

Fitch is considering withdrawing the ratings on this transaction due to the lack of relevancy to the agency's coverage combined with commercial reasons. The notes are significantly under collateralized. As reflected in the notes' current ratings at 'Dsf' and 'Csf', default has occurred or is inevitable at legal maturity or earlier.

While Fitch believes that investors are no longer interested in the agency's coverage of this transaction, the agency will allow investors the opportunity to request the continuing coverage. Investors are encouraged to contact the analysts indicated at the bottom of this press release within 30 calendar days. At the end of that period, Fitch will evaluate any responses and will make a final determination with respect to the withdrawal.

KEY RATING DRIVERS

Fitch's actions reflect both the severely undercollateralized notes as well as the collateralized debt obligations (CDOs) inability to make timely interest payments to class D. The CDO's liabilities currently exceed collateral by over $46 million. Only three assets remain in the highly concentrated pool, including two subordinate interests in real-estate owned (REO) properties (99%) and one defaulted commercial mortgage-backed securities (CMBS) bond (1%). All three assets have de minimis to no recoveries expected.

While no interest proceeds are being paid to the assets, a limited amount of principal has been received from amortization of the CMBS bond. Proceeds continue to be insufficient to pay timely interest to the class D notes, resulting in an event of default as of May 2014.

Capital Trust 2004-1 is a commercial real estate (CRE) CDO managed by CT Investment Management Co., LLC (CTIMCO).

RATING SENSITIVITIES

Classes E, F, and G are subject to further downgrade to 'Dsf' should the classes default at legal maturity or earlier.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$9,664,818 class D at 'Dsf'; RE 0%;

--$3,241,000 class E at 'Csf'; RE 0%;

--$6,481,000 class F at 'Csf'; RE 0%;

--$16,204,000 class G at 'Csf'; RE 0%.

Classes A-1, A-2, B, and C have paid in full. Fitch does not rate classes H, J and Preferred Shares.

Additional information is available on www.fitchratings.com

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Surveillance Criteria for U.S. CREL CDOs (pub. 24 Nov 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=811268

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=986918

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986918

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150624006427/en/

Fitch Ratings
Primary Surveillance Analyst
Stacey McGovern
Director
+1-212-908-0722
Fitch Ratings, Inc.
33 Whitehall, New York 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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