Subprime-Linked CDO Classes Downgraded

Thirty-six classes of notes issued by seven collateralized debt obligations with exposure to subprime residential mortgage-backed securities have been downgraded by Fitch Ratings. All but one of the downgraded classes were removed from Rating Watch Negative. The affected securities are as follows: eight classes from Independence VII CDO Ltd., a cash flow structured finance CDO; seven classes from Whateley CDO I Ltd., a cash flow CDO; six classes from Duke Funding VIII Ltd., a cash flow structured finance CDO; six classes from Straits Global ABS CDO I Ltd., a cash flow structured finance CDO; five classes from Capmark VI Ltd. and Capmark VI Delaware Corp., a hybrid CDO; three classes from South Coast Funding I Ltd., a cash flow structured finance CDO; and one class from ABSpoke 2005-X Ltd., a partially funded static synthetic structured finance CDO. The downgrades were attributed to collateral and credit deterioration in the portfolios, especially in subprime RMBS, alternative-A RMBS, or structured finance CDOs.