Three classes of securities issued by Independence II CDO Ltd., a collateralized debt obligation, have been downgraded by Fitch Ratings.The downgrades were as follows: class A notes, from AA-minus to A-minus; class B notes, from BB-minus to CCC; and class C notes, from CCC to C. Fitch attributed the downgrades to a deterioration of collateral quality and "the compression of the spread between the interest from the collateral and interest paid on the notes." Independence II is composed of approximately 42.3% commercial mortgage-backed securities, 34.5% residential MBS, 16.2% asset-backed securities, 6.4% CDOs, and 0.6% real estate investment trusts.

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