Four classes of mezzanine floating-rate notes from Triaxx Funding High Grade I Ltd., which invests in residential mortgage-backed securities, have been downgraded by Fitch Ratings. The downgrades were as follows: class B-1, from BB to CCC; class B-2, from B to CCC; and class C and D deferrable interest notes, from CCC to C. Classes B-1 and B-2 remain on Rating Watch Negative, and classes C and D were removed from Rating Watch Negative. The downgrades were due to "concerns about potential margin calls by the repo counterparty if there is a further drop in market prices, the short-term nature of the repo financing, and delevering of the program that has led to further realization of losses," the rating agency said. Triaxx invests in triple-A rated RMBS assets using proceeds raised by issuing notes and equity and using repo funding, Fitch said.

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