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.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry