Eleven classes of ARCap Resecuritization Inc. series 2006-RR7 commercial mortgage-backed securities have been downgraded by Fitch Ratings. Fitch also removed 13 classes in the deal from Rating Watch Negative and affirmed the ratings on four other classes. "In reviewing CMBS Re-REMICs, Fitch has targeted expected losses in different rating stresses based on the quality of the underlying CMBS collateral," the rating agency said. "The overall expected losses reflect the single-sector exposure, the concentrated nature of these portfolios, and the low expected recoveries upon bond default, especially for more junior and thinner classes of CMBS tranches."
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