Fitch Takes Various Rating Actions on 3 Classes of Cascade Funding CDO I, Ltd./Inc.

NEW YORK--()--Fitch Ratings has affirmed one, downgraded two, and subsequently withdrawn the ratings on all classes of notes issued by Cascade Funding CDO I, Ltd./Inc. (Cascade Funding I) as follows:

--$13,531,784 class A-1 downgraded to 'Dsf' from 'Csf' and withdrawn;

--$46,000,000 class A-2 affirmed at 'Dsf' and withdrawn;

--$7,173,737 class C downgraded to 'Dsf' from 'Csf' and withdrawn.

Cascade Funding I entered an event of default in December 2008 and its maturity was accelerated in January 2009. On Sept. 5, 2012, the trustee was directed by the requisite majority of the aggregate outstanding amount of each class and the hedge counterparty to liquidate the portfolio.

The final distribution occurred on Nov. 15, 2012. The trustee report showed that the proceeds available for distribution were insufficient to pay the class A-1 notes in full. Consequently, there were no available funds to make any payments on any other classes of notes.

Cascade Funding I was a managed cash flow structured finance (SF) collateralized debt obligation (CDO) invested in residential mortgage-backed securities and SF CDOs.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Additional information is available at 'www.fitchratings.com'.

The information used to assess these ratings was sourced from the issuer, periodic trustee reports, note valuation reports, and the public domain.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Global Rating Criteria for Structured Finance CDOs' (Oct. 3, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=690203

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Surveillance Analyst
Erika Tsang, CFA
Director
+1-212-908-0817
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Alina Pak, CFA
Senior Director
+1-312-368-3184
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com