Class B-1 of Birch Real Estate CDO I Ltd., a collateralized debt obligation consisting mainly of residential mortgage-backed securities, has been downgraded from BB to B by Fitch Ratings.The ratings on five other classes of notes in the transaction were affirmed. Fitch attributed the downgrade to par coverage that has "continued to erode" due to defaulted and 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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