Fitch Issues Flurry of Downgrades

Fitch Ratings also issued a flurry of additional downgrades Oct. 19, involving 55 classes of subprime mortgage-backed securities and seven classes of other MBS.Fitch also placed 10 classes of subprime MBS on Rating Watch Negative and affirmed the ratings on 91 such classes, as well as nine other classes of MBS. Among the securities affected by the downgrades were: 20 classes from six issues of Ameriquest Mortgage Securities Inc. mortgage pass-through certificates; eight classes from two issues of Asset Backed Funding Corp. mortgage pass-throughs; five classes from two issues by Credit-Based Asset Servicing and Securitization LLC; five classes from two issues of CDC Mortgage Capital Trust mortgage pass-throughs; four classes of Residential Asset Securities Corp. mortgage pass-throughs; and four classes of Countrywide Asset-Backed Securitization mortgage pass-throughs. The rating actions were attributed to a deterioration in the relationship between credit enhancement and loss expectations.