Fitch: Thornburg revised to CCC

Fitch Ratings said that given Thornburg Mortgage, Inc.'s entry into an override agreement with Thornburg's five remaining reverse repurchase agreement counterparties and their affiliates and Thornburg's recent offering of senior subordinated secured notes, it has revised Thornburg's issuer default rating to CCC from RD.

Fitch said it has also maintained the following ratings: senior notes remain at C/RR6, subordinated notes remain at C/RR6 and preferred stock at remain C/RR6.

Fitch said it also assigned a C/RR6 rating to Thornburg's new senior subordinated secured notes.

The issuer default rating is based on default remaining a real possibility for Thornburg's corporate obligations, particularly if Thornburg becomes exposed to meaningful margin call risk after expiration of the override agreement, the agency added.

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