Four classes of Countrywide residential mortgage-backed securities issued in 2004 have been downgraded by Fitch Ratings.The downgrades were as follows: CWMBS 2004-3, class B-4, from CC/DR4 to C/DR4; CWMBS 2004-8, class B-3, from BB to BB-minus, and class B-4, from B to CCC/DR2; and CWMBS 2004-J3, class B-3, from BB-minus to B. Fitch also placed class B-4 of CWMBS 2004-9 and class B-4 of CWMBS 2004-J9 on Rating Watch Negative, removed classes 1-A-3 and 1-A-7 of CWMBS 2004-8 from Rating Watch Negative, and affirmed the ratings on 117 classes from 23 CWMBS transactions. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and expected losses. The collateral backing the deals consists primarily of 30- and 15-year fixed-rate, first-lien prime mortgage loans.

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