Ten classes of G-Force CDO 2006-1, a commercial real estate collateralized debt obligation, have been downgraded by Fitch Ratings and removed from Rating Watch Negative. Fitch also affirmed the ratings on three other classes in the transaction, which is backed primarily by B-pieces of commercial mortgage-backed securities. "In reviewing CMBS Re-REMICs, Fitch has targeted expected losses in different rating stresses based on the quality of the underlying CMBS collateral," the rating agency said. "The overall expected losses reflect the single-sector exposure, the concentrated nature of these portfolios, and the low expected recoveries upon bond default, especially for more junior and thinner classes of CMBS tranches."
Processing Content
