S&P Eyes 33 CDO of ABS Classes

Thirty-three tranches from 10 transactions of U.S. cash-flow and hybrid collateralized debt obligations of asset-backed securities have been placed on CreditWatch with negative implications by Standard & Poor's Ratings Services.The actions followed the downgrade on July 12 of 682 classes of U.S. residential mortgage-backed securities collateralized by U.S. first-lien subprime mortgages, and on July 19 of 418 classes of U.S. RMBS backed by U.S. closed-end second-lien mortgages. "In light of these actions, we have reviewed the exposure of our globally rated CDO transactions to the downgraded securities and are assessing the impact on our CDO ratings," S&P said.