Chase Alt-A Classes Downgraded

Nine classes of mezzanine/subordinate bonds from two alternative-A Chase Flex Trust mortgage-backed securities deals have been downgraded by Fitch Ratings. The downgrades were based on expected defaults and losses from delinquent loans and projected losses from the currently performing pool, the rating agency said. Fitch said the first phase of its review of 2005-2007 alt-A transactions, focused on mezzanine and subordinate bonds, is nearing completion. "The second phase, which will begin shortly, will be a review of all the senior bonds that, in many instances, require additional cash flow analysis to evaluate the risk of the various individual classes within the senior tranche," Fitch said. The rating agency can be found on the Web at http://www.fitchratings.com.