(The following statement was released by the rating agency)CHICAGO, October 03 (Fitch) Fitch Ratings has affirmed 43 tranches and upgraded eight tranches from eight Trust Preferred (TruPS) Collateralized Debt Obligations (CDOs) backed by insurance collateral. In addition, Fitch has maintained Stable Outlooks on 27 tranches and assigned  Stable Outlooks on three tranches rated 'Bsf' and higher. The rating action report, titled 'Fitch Takes Various Rating Actions on Eight TruPS CDOs', dated Oct. 3, 2013, details the individual rating actions and portfolio characteristics for each rated CDO. It can be found on Fitch's website at 
  www.fitchratings.com'
  by performing a title search or by using the link below. For further information and transaction research, please refer to '
  www.fitchratings.com'.
 KEY RATING DRIVERSThe key rating drivers for today's rating actions are the relative stability of the underlying credit, deleveraging of the transactions, and the concentrated nature of the portfolios. Trust preferred securities (TruPS), surplus notes, and other debt issued by the U.S Property and Casualty (P&C) and Life and Health (L&H) insurance companies represent the main credit exposure across these transactions. The overall credit quality of the underlying collateral of the CDO portfolios remained stable over the last year. The average credit quality was 'BB-/BB' for this year's review. This is supported by stable performance, with no new deferrals or defaults over a 12-month period ending September 2013 across Fitch-rated insurance TruPS CDOs. The combined default and deferral rate remained at 6.4% of the original balance for this review. Further reflecting the relatively stable credit performance of the underlying portfolios, senior coverage tests in all of the eight CDOs continue to pass, while a mezzanine coverage test is failing in only one transaction.All transactions had paydowns to the most senior classes due to the combination of the collateral redemptions and excess spread. The optimal principal distribution amount (OPDA) feature continued to redirect a portion of interest proceeds to pay down the most senior notes in four transactions. Fitch updated its criteria to estimate and credit the future levels of excess spread over a five year horizon in its rating analysis. Across the eight deals, this additional credit enhancement provided a minimal uplift to the passing ratings, from zero to two notches. Given that the base line of excess spread received a larger haircut in higher rating stresses, notes rated at high investment grade levels received less credit from projected future excess spread. Therefore, the impact was in general more significant for notes rated below investment grade.On average, the senior-most class of insurance TruPS CDOs received roughly 37% in principal paydowns since the last review. The paydowns increased portfolio concentration with the number of performing issuers in the portfolios ranging from 14 to 34. Individual transaction statistics can be found in the rating action report titled, 'Fitch Takes Various Rating Actions on Eight TruPS CDOs', dated Oct. 3, 2013.To account for a potential underperformance of the oversized positions, Fitch applied a sensitivity scenario as described in the criteria 'Surveillance Criteria for TruPS CDOs,' dated July 10, 2013. Most portfolios exhibited a one to two category difference in passing ratings in the base and sensitivity scenarios. For notes that were already rated above 'BBBsf', committee assigned a higher weight to the outcome of the sensitivity scenario. While the assumptions underlying the sensitivity scenario were conservative, given the long term nature of the portfolio and a high degree of the concentration, the risk of potential future underperformance from the large positions could lead to rating volatility which would be inconsistent with high investment grade ratings. Contact:Primary AnalystBradley Howe, CFAAssociate Director+1-312-368-2081Fitch Ratings, Inc.70 W. Madison StreetChicago, IL 60602Committee ChairpersonAlina PakSenior Director+1-312-368-3184Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com.Additional information is available at '
  www.fitchratings.com'.
  The information used to assess these ratings was sourced from trustee reports, collateral manager reporting Web sites and the public domain.Applicable Criteria and Related Criteria:--Surveillance Criteria for Trust Preferred CDOs' (July 10, 2013);--'Global Rating Criteria for Corporate CDOs' (Aug. 8, 2013);--'Counterparty Criteria for Structured Finance Transactions' (May 13, 2013);--Criteria for Rating Caps and Limitations in Global Structured Finance Transactions'(June 12, 2013);Applicable Criteria and Related Research: Surveillance Criteria for Trust Preferred CDOs
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712403
 Global Rating Criteria for Corporate CDOs
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715492
 Counterparty Criteria for Structured Finance Transactions ?? Effective 12 March 2012 to 20 May 2012
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=667929
 Criteria for Rating Caps and Limitations in Global Structured Finance Transactions 
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709840
 Additional Disclosure Solicitation Status 
  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=804053
 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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.