Fitch Ratings has downgraded 759 speculative grade bonds in 405 nonconforming U.S. residential mortgage-backed securities transactions to “Dsf,” indicating they have taken principal writedowns.
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All of the downgraded bonds had previously carried a rating indicating Fitch expected them to default. The rating agency expects minimal recoveries on 60% of the bonds and recoveries of 50% to 90% of the balance on 40% of the bonds.
Fitch said 169 of the 405 transactions affected by the downgrades were prime, 137 were alternative-A and 92 were subprime credit.
