Four classes of notes issued by Oceanview CBO I Ltd. have been downgraded by Fitch Ratings and removed from Rating Watch Negative.The downgrades were as follows: class A-2, from AA to A; class B-F, from BBB to BB; class B-V, from BBB to BB; and class C, from BB to CCC-plus. The ratings on three other classes in the deal were affirmed. The transaction, a collateralized debt obligation managed by Deerfield Capital Management, is supported by a diversified portfolio of residential mortgage-backed securities (53.7%), CDOs (14.1%), commercial MBS (11.3%), corporate debt (11.2%), asset-backed securities (9.5%), and real estate investment trusts (0.2%), according to the rating agency. Fitch attributed the downgrades to deteriorating collateral that has resulted in declining overcollateralization.

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