Derivative Fitch last week said the string of so-called "first generation" CPDOs that have come to the market over the last nine months would not warrant a triple-A or even double-A rating using its own methodology.

Both Fitch and its rival, Dominion Bond Rating Service, last week spoke out about the risk related to CPDOs. The rating agencies primarily cited structural concerns and challenges related to modeling future performance of the early structures, although both Fitch and DBRS projected a relatively optimistic tone regarding future CPDO deals - proposals of which both agencies are currently reviewing.

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