CBO Action: Moody's

Four classes of notes issued by Provident CBO I Ltd. were downgraded by Moody's Investors service. The $10M Class B-1 Senior Secured Fixed Rate Notes due December 2010 were downgraded to B1 from Ba3; the $31M Class B-2 Senior Secured Fixed Rate Notes due December  2010 were downgraded to B2 from B1; the $5M  Class C-1 Subordinated Floating Rate Notes due December 2010 were downgraded to C from Ca; and the $22M Class C-2 Subordinated Fixed Rate Notes due December 2010 were downgraded to C from Ca. According to Moody's, Provident CBO, a primarily non-IG grade CDO, is currently violating theWeighted Average Rating Test, the Class B Overcollateralization Test and the Class C Overcollateralization Test.