The healthcare securitization deal, Craegmoor Funding No.2, had its class M and B notes downgraded last week and it faces an uphill battle to save the underlying ratings on its triple-A notes.
Fitch Ratings downgraded the class M notes to BBB-' from A-' and class B notes to BB-' from BB+.' It has affirmed the class A notes at AAA.' Fitch is retaining the rating watch negative on the class M notes and the class B notes. The class A1 and A2 notes benefit from an unconditional and irrevocable guaranty from MBIA Assurance. The underlying rating of A' has been placed on ratings watch negative.