E*Trade CDO Classes Downgraded

Four classes of securities issued by E*Trade ABS CDO I Ltd., a collateralized debt obligation supported in part by residential and commercial mortgage-backed securities, have been downgraded by Fitch Ratings.The downgrades are as follows: classes C-1 and C-2, from CCC to CC; and $12.50 million of preference shares and approximately $4.97 million of composite securities, from CC to C. The rating agency said the downgrade of the class C notes was due to a low projected principal recovery for the notes. The downgrade of the preference shares "reflects the likelihood that there will not be future distributions to this class," Fitch said, and the downgrade of the composite securities was based on the likelihood that they will be limited to interest distributions from class C-1. The CDO is supported by RMBS, CMBS, CDOs, and asset-backed securities. Fitch can be found online at http://www.fitchratings.com.