Three classes of notes issued by Enhanced Mortgage-Backed Securities V Ltd. have been downgraded by Derivative Fitch.The downgrades were as follows: class A-2 senior subordinated notes, from BBB to BB; class A-3 subordinated notes, from B-minus to CC/DR3; and class A-4 junior subordinated notes, from CCC to C/DR6. Class A-4 was removed from Rating Watch Negative, but the other two classes remain there. EMBS V, a collateralized debt obligation, consists primarily of mortgage- and asset-backed securities. "This transaction has violated overcollateralization tests, and its asset portfolio is currently being liquidated," Fitch said. ".... Losses incurred during the liquidation process have increased the risk that the class A-2 notes may not be paid in full. It is likely that class A-3 will incur a significant loss, and class A-4 may suffer a complete loss." Derivative Fitch can be found online at http://www.derivativefitch.com.

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