Fitch Ratings has downgraded 439 bonds in 244 RMBS transactions to "Dsf." The rating agency explained that the downgraded bonds have all incurred a principal write-down.

Over 99% of those bonds downgraded had previously been rated "Csf," which means they were expected by Fitch to have a default. The remaining bonds were rated "CCsf."

Of the 144 transactions, 116 consist of prime mortgages, 77 are Alt-A and 40 are considered subprime, with the remainder from "other sectors," Fitch said.

Minimal recovery for investors is expected on 58% of these bonds, while another 37% of the bonds could see a 50% to 90% recovery of the outstanding balance.

The downgrades only involve those bonds with write-downs and the remaining bonds in the affiliated transactions were not analyzed, Fitch said.

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