CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed five classes of notes issued by South Street CBO 2000-1 Ltd. /Corp. (South Street CBO 2000-1) as follows:

-- $14,115,897 class A-4L notes at 'Csf/RR5';

-- $5,646,359 class A-4A notes at 'Csf/RR5';

-- $7,057,948 class A-4C notes at 'Csf/RR5';

-- $15,000,000 class B-1 notes at 'Csf/RR6';

-- $4,198,658 class B-2 notes at 'Csf/RR6'.

The affirmations of the class A-4L, class A-4A and class A-4C (collectively, class A-4) notes indicate Fitch's expectation that available proceeds will be insufficient to redeem the cumulative $26.8 million principal balance due to these notes at the scheduled maturity in May 2012. The underlying portfolio consists of just one performing bond with a $3.5 million par balance and several defaulted and equity positions. While the class A-4 notes have remained timely on their interest payments to date, the class B-1 and B-2 notes are currently not receiving any interest or principal distributions and are not expected to receive any further distributions. Fitch expects all notes to default given the minimal recovery values of the remaining assets in the portfolio.

Fitch expects the class A-4 notes to recover between 11% and 30% of their current principal balance, consistent with an 'RR5' on Fitch's Recovery Rating scale. The class B-1 and B-2 notes are not expected to receive any future distributions, consistent with an 'RR6'. Recovery Ratings are designed to provide a forward-looking estimate of recoveries on currently distressed or defaulted structured finance securities. Distressed securities are defined as bonds that face a real possibility of default at or prior to maturity and by definition are rated 'CCC' or below. For further detail on Recovery Ratings, please see Fitch's report 'Global Rating Criteria for Corporate CDOs'.

Fitch's PCM was not utilized in this rating analysis due to the performing portfolio's concentration in a single security. Interest rate stresses and default timing were also not considered in the analysis of this transaction.

South Street CBO 2000-1 is a cash flow collateralized debt obligation (CDO) that closed on May 3, 2000. Payments are made semi-annually in May and November. The scheduled maturity date is May 2012.

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' (Aug. 16, 2010);

-- 'Global Rating Criteria for Corporate CDOs' (July 5, 2010);

-- 'Criteria for Structured Finance Recovery Ratings' (Aug. 17, 2009)

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

Global Rating Criteria for Corporate CDOs
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=537494

Criteria for Structured Finance Recovery Ratings
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=462434

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CONTACT:

Fitch, Inc.
Primary Analyst
Robert Rhein, +1-312-606-2314
Director
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or
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Senior Director
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brian.bertsch@fitchratings.com

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