Five classes of notes issued by Independence V CDO Ltd., a collateralized debt obligation consisting largely of subprime and alternative-A residential mortgage-backed securities, have been downgraded by Fitch Ratings. The downgrades were as follows: class A-1, from BBB-minus to CCC; classes A-2A and A-2B, from B to C; class B, from CCC to C; and class C, from CC to C. All five classes were removed from Rating Watch Negative. The downgrades were attributed to "significant collateral deterioration" in subprime and alt-A RMBS. More than half of the portfolio, 62.6%, consists of subprime RMBS, while the remainder consists of alternative-A RMBS, 13.3%; commercial MBS, 10.1%; and prime RMBS, CDOs, and other asset-backed securities, 14.0%.
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