Westways CDO Classes Downgraded, Withdrawn

Fitch Ratings also downgraded and withdrew five classes of notes from two Westways mortgage market value collateralized debt obligations.The downgrades were as follows: Westways Funding VII Ltd., class LD loan interests, from CC/DR5 to C/DR2, and income notes, from CC/DR6 to C/DR6; and Westways Funding VIII Ltd., class D, from CC/DR5 to C/DR5, class LD, from CC/DR5 to C/DR5, and income notes, from CC/DR6 to C/DR6. Both transactions had failed overcollateralization tests, and their portfolios were liquidated, Fitch reported. The asset portfolios contained floating-rate mortgage-backed securities, and agency securities constituted over half of each portfolio.