Article: Fitch Places Taberna Preferred Funding II, Ltd. on Rating Watch Negative.

NEW YORK -- Fitch has placed three classes of notes issued by Taberna Preferred Funding II, Ltd. (Taberna II) on Rating Watch Negative, totaling $84.3 million. Taberna II is a collateralized debt obligation (CDO) backed primarily by trust preferred securities issued by real estate investment trusts (REITs) and homebuilders. The following rating actions are effective immediately:

--$29,866,591 class E-1 notes, rated 'BBB', placed on Rating Watch Negative;

--$10,035,175 class E-2 notes, rated 'BBB', placed on Rating Watch Negative;

--$42,500,000 class F notes, rated 'BB+', placed on Rating Watch Negative.

Fitch's rating actions reflect ...

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