Glacier Funding II CDO Classes Downgraded

Three classes of notes issued by Glacier Funding CDO II, a collateralized debt obligation that includes mortgage-backed securities, have been downgraded by Fitch Ratings.The downgrades were as follows: class B notes, from AA to A; class C notes, from BBB to BB (and removed from Rating Watch Negative); and class D notes, from BB to B (and removed from Rating Watch Negative). Fitch also affirmed the ratings on two other classes in the CDO. "Fitch's rating actions reflect the significant collateral deterioration within the portfolio, specifically subprime residential mortgage-backed securities, since the last rating action on March 13, 2007," the rating agency said.