Thirty-three classes from 19 collateralized debt obligations backed partly by subprime residential mortgage-backed securities have been placed on Rating Watch Negative by Fitch Ratings.The CDO rating actions "are a direct result of collateral deterioration, specifically subprime RMBS, whereby significant portions of the portfolio have been downgraded, placed on RWN or 'Under Analysis' by either Fitch, Moody's, or S&P in recent weeks," Fitch said. The rating agency said it also factored in exposure to 2006 vintage closed-end second-lien RMBS "regardless of any rating activity, based on the severe underperformance of this subsector."
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