Class B-1 of Birch Real Estate CDO I Ltd./Birch Real Estate CDO I Corp., a collateralized debt obligation consisting mainly of residential mortgage-backed securities, has been downgraded from BBB to BB by Fitch Ratings.The ratings on five other classes of notes in the transaction were affirmed. Fitch attributed the downgrade to "steadily eroding" par coverage due to a newly defaulted asset and lowered recovery assumptions for distressed assets. Approximately 81% of the transaction is composed of residential MBS, while commercial MBS and asset-backed securities account for approximately 12% and 7%, respectively.

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