Fitch Ratings has downgraded $37.2 billion worth of collateralized debt obligations in 84 structured finance CDOs.The rating agency said the actions followed a review of 55 U.S. and European structured finance CDOs executed on a synthetic basis, and 29 U.S. and Asian structured finance CDOs executed on a cash/hybrid basis. The downgrades were based on continued credit deterioration in the underlying collateral and changes to the default forecasting assumptions of the rating agency's default model, Fitch said. "The updated assumptions reflect increased probabilities of default with respect to recent vintage subprime residential mortgage-backed securities and [structured finance] CDOs," the rating agency said.

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