Fitch puts 25 CDOs on watch negative due to Quebecor exposure

Fitch Ratings said it placed 36 tranches from 20 public CDOs and six tranches from five private CDOs on ratings watch negative following Quebecor World's filing for credit protection on 21 January. Fitch identified 23 synthetic Asian transactions with exposure, 39 European transactions consisting of 38 synthetic and one cash with exposure, as well as 11 US transactions consisting of nine synthetic and two cash with exposure.

Fitch says, however, the majority of the deals that were placed on rating watch negative were European. There were no Asian deals placed on watch, while only two US deals, both privately rated, were placed on ratings watch negative.

The rest of the transactions that were not placed on ratings watch negative are considered to have sufficient credit enhancement or excess spread to support the current ratings upon Quebecor's default.