Four classes of Countrywide asset-backed securitizations have been downgraded by Fitch Ratings, and eight classes have been placed on Rating Watch Negative.The downgrades were as follows: series 2006-SPS1, class M-8, from BBB-plus to BB-plus, class M-9, from BBB to BB, and class B, from BBB-minus to BB-minus; and series 2006-SPS2, class B, from BBB-minus to BB-minus. The four downgraded classes were placed on Rating Watch Negative, as were classes M-6 and M-7 of series 2006-SPS1 and classes M-8 and M-9 of series 2006-SPS2. In addition, Fitch affirmed the ratings on 14 other classes in the two deals. Fitch attributed the negative rating actions to deterioration in the relationship between credit enhancement levels and loss expectations.
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