Twenty-six classes of pass-through certificates from six First Horizon mortgage transactions have been downgraded by Fitch Ratings. Fitch also placed four classes on Rating Watch Negative, removed two classes from Rating Watch Negative, and affirmed the ratings on 23 classes from eight First Horizon deals. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and loss expectations. The collateral generally consists of fixed-rate, first-lien prime mortgage loans, with some interest-only loans to alternative-A borrowers.

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