Fitch Downgrades Subprime-Linked CDOs

Twenty-seven classes of notes issued by five collateralized debt obligations linked to subprime residential mortgage-backed securities have been downgraded by Fitch Ratings. The affected securities include six classes from Jupiter High-Grade CDO II Ltd./Inc., a cash CDO; six classes of notes from ACA ABS 2003-1 Ltd. and six from ACA ABS 2003-2 Ltd., both cash flow structured finance CDOs; and five classes of notes from GSC ABS CDO 2005-1 Ltd. and four from GSC ABS CDO 2006-1c Ltd., both hybrid CDOs. The downgrades were attributed to "significant collateral deterioration" in the portfolios' subprime RMBS as well as (in the Jupiter and GSC ABS 2005-1 CDOs) structured finance CDOs with underlying exposure to subprime RMBS and (in the Jupiter CDO) alternative-A RMBS with underlying exposure to subprime RMBS. Fitch can be found online at http://www.fitchratings.com.