Fitch: Princeton Deemed Acceptable as CDO AM for Prudential CBO
In a press release today, Fitch announced the following:
Fitch Ratings has reviewed Princeton Advisory Group (Princeton) as a potential replacement collateralized debt obligation (CDO) asset manager for Prudential Structured Finance CBO I, and determined the manager's capabilities to be consistent with Fitch's criteria for credit asset managers.
On Oct. 4, 2010, Fitch was notified of a proposal to transfer the CDO asset management responsibilities for Prudential Structured Finance CBO I to Princeton. Fitch's review procedure for potential replacement CDO asset managers is outlined in the special report titled 'CDO Asset Managers: U.S. Replacement Activity Update', dated Dec. 9, 2010, available on the Fitch Ratings website.
Established in 2002 as a structured credit asset management firm, Princeton is a Securities and Exchange Commission (SEC) registered investment advisor headquartered in Princeton, New Jersey. Princeton is owned exclusively by active employees and currently has a staff of 10 professionals managing approximately $4 billion through its asset-backed securities (ABS) CDO platform. Princeton currently manages seven ABS CDOs, none of which are rated by Fitch.
Fitch emphasizes that the scope of its review was solely to determine that Princeton meets Fitch's minimum guidelines to manage Prudential Structured Finance CBO I within the context of Fitch's stated review procedure for replacement managers. Fitch is not a party to the transactions and therefore does not provide consent or approval, as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the proposed transfer of asset management responsibilities is completed.
