Three tranches of notes issued by Beacon Hill CBO Ltd. were downgraded by Moody's Investors Service late yesterday. $9.25M Class B-1 Second Priority Notes, Due 2035, were downgraded to B1 from A3; $10.0M Class B-2 Second Priority Notes, Due 2035, were downgraded to B1 from A3; and $7.3M Class C Senior Subordinated Secondary Fixed Notes, Due 2035 were downgraded to Caa1 from Baa2.

According to Moody's the deal is currently violating the Class A Overcollateralization Test, the Class B/C overcollateralization Test, and the Moody's Maximum Rating Distribution Test. The Moody's Maximum Rating Distribution Test is 1055 as of the April 4, 2003 Trustee Report vs. the trigger of 450.

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