Three classes of CBRE Realty Finance CDO 2007-1 Ltd./LLC have been downgraded by Fitch Ratings. The downgrades were as follows: class J, from BB-plus to B-plus; class K, from BB to B; and class L, from BB-minus to B-minus. Fitch also affirmed the ratings on 11 other classes in the collateralized debt obligation. The rating agency attributed the downgrades to expected losses, a breach of the transaction's poolwide expected-loss covenant, and "failure of Fitch's property value decline stress scenarios." The deal is a revolving commercial real estate CDO.
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