Two classes of Credit Suisse's CSMC series 2006-7 mortgage-backed deal have been downgraded by Fitch Ratings, and one has been placed on Rating Watch Negative.Class DB-8 of groups 6-12 was downgraded from BB to B-plus, and class DB-9 was downgraded from B to C/DR4. Class DB-7 was placed on Rating Watch Negative. In addition, the ratings on 14 other classes in the deal were affirmed. The negative rating actions were attributed to a deteriorating relationship between credit enhancement and expected losses. The collateral consists of first-lien, fixed-rate alternative-A mortgage loans.

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