Fitch Downgrades B&C-, Alt-A-Linked CDOs

Twenty-five classes of notes issued by four collateralized debt obligations linked to subprime or alternative-A residential mortgage-backed securities have been downgraded by Fitch Ratings. The affected securities include eight classes from Bluegrass ABS CDO II Ltd., a structured finance CDO; seven classes from Tigris CDO 2007-1 Ltd./LLC, a cash flow structured finance CDO; five classes from Kleros Preferred Funding Ltd./Inc., a static CDO; and five classes from Inman Square Funding I Ltd./Inc. Seventeen of the downgraded classes were removed from Rating Watch Negative, and two were placed on Rating Watch Negative. The downgrades were attributed variously to collateral or credit deterioration in the portfolios' subprime or alt-A RMBS or structured finance CDOs with underlying exposure to subprime RMBS. Fitch can be found online at http://www.fitchratings.com.