Fitch Eyes Thornburg Notes

The floating-rate notes of Thornburg Mortgage Capital Resources LLC have been placed on Rating Watch Negative by Fitch Ratings. Fitch said all the outstanding floating-rate notes in the program have extended for 30 business days, with a final maturity of April 14, 2008. "The program documents allow for a one-time extension to the maturity of outstanding notes at the option of the manager in the event that additional notes cannot be issued," Fitch said. "Since June 1, 2007, the outstanding liabilities of the program have declined from $9.2 billion to the current $300 million level." Fitch said the negative rating action was based on concerns about further declines in the market value of the residential mortgage-backed securities (backed by hybrid adjustable-rate mortgages) supporting the notes. The rating agency also reported that the issuer default rating and senior unsecured notes of Thornburg Mortgage Inc. remain on Rating Watch Negative.