CBO Action: Moody's

One class of notes from Zermatt CBO Ltd. was downgraded by Moody's Investors Service. The $51 million Class B senior secured fixed rate notes due 2013 were downgraded to 'Caa3' from 'Caa1'.  Zermatt, which closed in September 1998, is a CDO consiting primarily of non-investment grade corporate debt oblgiations. According to Moody's, it is currently violating the Maximum Weighted Average Rating Factor Test, the Diversity Test, the Class B Par Value Test and the Class C Par Value Test.