Two classes of Solstice ABS CDO Ltd., a collateralized debt obligation that includes residential and commercial mortgage-backed securities, have been downgraded by Fitch Ratings.The class B notes were downgraded from BB-plus to B, and the class C notes were downgraded from CC to C. Fitch said the downgrades stemmed from reduced collateral coverage levels. Solstice consists of 42% residential mortgage-backed securities, 37.6% CDOs, 10.1% asset-backed securities, 5.2% corporate debt securities, 3.5% CMBS, and 1.6% real estate investment trust securities.
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