Fitch Downgrades More B&C-Linked CDOs

Twenty-five classes of notes issued by six collateralized debt obligations linked to subprime residential mortgage-backed securities have been downgraded by Fitch Ratings. All but one of the downgraded classes were removed from Rating Watch Negative. (The rating on the one exception was withdrawn because of the withdrawal of the Insurer Financial Strength rating of MBIA, which Fitch no longer rates.) The affected securities are as follows: six classes from North Street Referenced Linked Notes 2002-4 Ltd., a partially funded synthetic, structured finance CDO; five classes from Fulton Street CDO Ltd./Funding Corp., a cash flow structured finance CDO; five classes from Glacier Funding CDO III Ltd./Inc.; four classes from Glacier Funding CDO II Ltd./Inc.; four classes from Northwall Funding CDO I Ltd./Inc., a cash flow structured finance CDO; and one class from ABSpoke 2005-XA Ltd., a partially funded static, synthetic, structured finance CDO. The downgrades were attributed to collateral deterioration in subprime RMBS, alternative-A RMBS (in two transactions), and structured finance CDOs with underlying exposure to subprime RMBS (in one transaction).