Pru CBO Classes Downgraded

Seven classes of notes issued by Prudential Structured Finance CBO I, which are supported in part by residential and commercial mortgage-backed securities, have been downgraded by Fitch Ratings.The downgrades were as follows: class A-1L floating rate notes and class A-1 fixed-rate notes, from AAA to AA-plus; class A-2L floating-rate notes, from A-minus to BBB-plus; class B-1L floating-rate notes and class B-1 fixed-rate notes, from BBB-minus to BB-plus; and class B-2L floating-rate notes and class B-2 fixed-rate notes, from BB-minus to B. Classes A-2L, B-1L, B-1, B-2L, and B-2 were also removed from Rating Watch Negative. The rating agency attributed the downgrades to various factors, including "substantial downward rating migration in the credit quality of the portfolio and a reduction in excess spread." The transaction, a collateralized bond obligation, is supported by a diversified portfolio of RMBS, CMBS, and asset-backed securities. Fitch can be found online at http://www.fitchratings.com.