Four classes of notes issued by Varick Structured Asset Fund Ltd. have been downgraded by Fitch Ratings.The downgrades were as follows: classes A-1 and A-2, from BBB-minus to BB; and classes B-1 and B-2, from CCC-minus to CC. The transaction, a collateralized debt obligation managed by Clinton Group Inc., is supported by a diversified portfolio of asset-backed securities, residential mortgage-backed securities, and commercial MBS. Fitch attributed the downgrades to continued deterioration of the collateral and the adverse effects of its interest rate hedge. As of Oct. 28, defaulted assets represented 5.3% of the collateral and eligible investments, the rating agency said. Fitch can be found online at http://www.fitchratings.com.

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