One class of notes issued by Orchard Park CDO Ltd., a collateralized debt obligation partly composed of residential and commercial mortgage-backed securities, has been downgraded by Fitch Ratings.The downgrade was as follows: class A-2, from AAA to AA-plus. In addition, the ratings on two other classes were affirmed. Fitch said the deal is failing its interest coverage test: its IC ratio of 98.1% falls short of the trigger of 101.5%. The transaction has also been hurt by a "misalignment in the interest rate hedge" that has left it overhedged by approximately $7.7 million, according to Fitch. In addition to RMBS and CMBS, the transaction consists of asset-backed securities and other CDOs, the rating agency said.

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