Fitch Downgrades Subprime-Linked CDOs

Seventy-five classes of notes in subprime mortgage-related collateralized debt obligations from six issuers have been downgraded by Fitch Ratings and removed from Rating Watch Negative. The affected securities were as follows: 20 classes from Baker Street Finance Ltd. and Baker Street Finance USD Ltd.; 10 classes from Hanover Street Finance Ltd.; nine classes from Clifton Street Finance Ltd.; nine classes from Dorset Street Finance Ltd.; nine classes from Pembridge Square Finance Ltd.; nine classes from Regent Street Finance Ltd.; and nine classes from Sydney Street Finance Ltd. Fitch said the "driving factor" behind the downgrades was higher loss expectations in the subprime residential mortgage-backed securities and structured finance CDO portions of the managed synthetic CDO portfolios, stemming primarily from "rapid credit deterioration" in the 2005, 2006, and 2007 vintages. Fitch can be found online at http://www.fitchratings.com.