Fitch Breaks On SF CDO Downgrades

Fitch Ratings said that downgrades for Structured Finance CDOs are over and "there will be no material changes made to the downgraded ratings," said spokesman Jim Jockle on a conference call today. Kevin Kendra, a managing director in Derivative Fitch's U.S. Structured Credit Group said that all of the actions Fitch has taken accurately reflect the rating agency's current view of the quality of the loans. Fitch said that in its key default probability assumption changes, the 2006/ 2007 SF CDOS with exposure to U.S. RMBS, received a whopping nine-notch downward adjustment.