RALI MBS Classes Downgraded

Four classes of Residential Accredit Loan Inc. mortgage pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: series 2005-QS5, class B-1, from BB to B-plus, and class B-2, from B to C/DR4; and series 2005-QS17, class B-1, from BB to B-plus, and class B-2, from B to C/DR4. In addition, Fitch placed nine classes on Rating Watch Negative and affirmed the ratings on 66 classes from 13 RALI securitizations. The negative rating actions were due to a deteriorating relationship between credit enhancement and loss expectations, Fitch said. The collateral for the deals consists primarily of 15- and 30-year fixed-rate mortgage loans extended to alternative-A borrowers, the rating agency said. Fitch can be found online at http://www.fitchratings.com.