Moody's Investors Service placed several notes issues by Gleacher CBO 2000-1 Ltd. on watch for possible upgrade today. According to the rating agency, the upgrade watch is due the anticipated amortization of $6.7 million in class A notes relating to a failed O/C test for the class D notes, which "recalls" cash from the collateral manager, trustee and class E noteholders.

"This watchlist action is in response to the revised Note Valuation Report dated May 21, 2003, relating to the May 9, 2003 Payment Date," the rating agency stated. The notes are on watch "pending the payment to the Class A Notes from the funds being recalled..."

The following notes were included in the announcement: the $276 million class A floating rate notes due May 9, 2012; the $33 million class B-1 floating Rate Notes due May 9, 2012; the $10 million class B-2 fixed rate notes due May 9, 2012; and the  $13 million class C floating rate Notes due May 9, 2012.

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