Fitch: Subprime Exposure Drops for ABCP

Subprime-related mortgage exposure for U.S. asset-backed commercial paper programs fell sharply in the fourth quarter, though it remained high by historical standards, according to Fitch Ratings.The rating agency said ABCP programs had experienced a "significant spike" in subprime exposure a year earlier. Fitch attributed the recent decrease in subprime exposure to slowing originations, the resulting paydown out of warehouse facilities, and the closing of several subprime single-seller facilities in 2006. "While subprime exposure remains high on an historical basis, Fitch believes the levels are manageable, and investors remain well insulated from the pressures facing other market participants," Fitch said. The rating agency can be found on the Web at http://www.fitchratings.com.