Citi MBS Classes Downgraded

Three classes of Citigroup Mortgage Loan Trust series 2003-1 have been downgraded by Fitch Ratings.The downgrades were as follows: class WB-3, from BBB to BB-minus; class WB-4, from BB-minus to CCC; and class WB-5, from CCC to CC. Fitch also affirmed the ratings on eight other classes in the transaction. The downgrades reflect deterioration in the relationship between credit enhancement and expected losses, the rating agency said. "Given the high outstanding delinquencies for pool W, Fitch does not feel that the protection offered by the subordination of the WB-6 bond is adequate to prevent a principal writedown of the WB-5 certificate from occurring," Fitch said. In addition, losses could exceed the protection offered by both the WB-5 and WB-4 bonds, eventually causing a principal writedown on the WB-3 bond. The loans consist of fixed-rate prime mortgages secured by first and second liens, primarily on one- to four-family residential properties.