Two classes of notes from Triaxx Funding High Grade I Ltd., which invests in residential mortgage-backed securities, have been placed on Rating Watch Negative by Fitch Ratings.The affected securities are classes C and D mezzanine floating-rate deferrable-interest notes. Triaxx invests in triple-A rated RMBS assets using proceeds raised by issuing notes and equity and using repo funding, Fitch said. The negative rating actions were attributed to "concerns about continued availability of repo funding with terms similar to those that are currently in place with respect to haircuts and funding rates," the rating agency said. "Credit quality of the underlying assets has remained stable, but the manager has deleveraged the structure because of the decline in price of these assets." Fitch can be found online at http://www.fitchratings.com.

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