Ten classes of notes issued by Duke Funding High Grade II-S/EGAM I Ltd., a collateralized debt obligation used to acquire mortgage-backed securities, have been downgraded by Fitch Ratings.The downgraded notes were as follows: class A2 and series 2 class A2, from BBB-minus to CCC; class B1 and series 2 class B1, from BB to CC; class B2 and series 2 class B2, from BB-minus to CC; class C and series 2 class C, from B to CC; and class D and series 2 class D, from CCC to CC. All the notes remain on Rating Watch Negative. The downgrades were attributed to "significant declines in portfolio value." Fitch said the proceeds of the notes are used to buy a diversified portfolio of triple-A rated, primarily private-label residential MBS.

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