Corvus, Savannah CDO Classes Downgraded

Six classes of notes from collateralized debt obligations issued by Corvus Investments Ltd. and Savannah II CDO Ltd. have been downgraded by Fitch Ratings.The Corvus downgrades were as follows: class A-1, from BB to BB-minus; class A-2, from BB to BB-minus; class B, from B to CCC; and class C, from CCC to CC. In the Savannah deal, class A was downgraded from BB to BB-minus and class B was downgraded from B to CCC. All the downgraded classes, as well as class D in the Corvus deal and class C in the Savannah deal, remain on Rating Watch Negative "due to the continuing uncertainty of the timing and ultimate resolution of both transactions' current impaired assets and the risk of further deterioration in the reference pools," Fitch said. The portfolios are composed of residential mortgage-backed securities, commercial MBS, real estate investment trusts, asset-backed securities, CDOs, and corporate credits, the rating agency said. Fitch can be found online at http://www.fitchratings.com.