Pacific CDO Classes Downgraded

Three classes of notes issued by Pacific Coast CDO Ltd. have been downgraded by Fitch Ratings and removed from Rating Watch Negative.The downgrades were as follows: class B, from A-minus to BBB-minus; class C-1, from BB-plus to B-minus; and class C-2, from BB-plus to B-minus. In addition, the ratings on two other classes of securities were affirmed. Pacific Coast is a collateralized debt obligation that consists of 55.2% residential mortgage-backed securities, 19.1% asset-backed securities, 13% commercial MBS, 6.9% corporate bonds, and 5.8% CDOs. Since May 25, Fitch has downgraded $16.5 million of collateral that the rating agency said it expects to incur "significant impairment of principal and interest." Fitch can be found online at http://www.fitchratings.com.