Cap Guardian CDO Classes Downgraded

Three classes of notes issued by Capital Guardian ABS CDO I Ltd., a collateralized debt obligation partly composed of residential and commercial mortgage-backed securities, have been downgraded by Fitch Ratings.The downgrades were as follows: class B, from AA-minus to BBB; class C, from BBB-plus to B-plus; and $15 million of preference shares, from BB-minus to CCC. In addition, Fitch affirmed the ratings on three other classes in the deal. The rating agency attributed the lowered ratings to deterioration in credit quality due to the downgrading of several assets, including assets with exposure to manufactured housing and aircraft leases. The CDO consists of RMBS, CMBS, asset-backed securities, CDOs, and corporate debt, the rating agency said. Fitch can be found online at http://www.fitchratings.com.