Fitch Ratings yesterday downgraded $10 billion and affirmed $435.9 million of rated notes across 16 CDOs backed primarily by trust preferred securities (TruPS), senior and subordinated debt issued by REITs, homebuilders and financial institutions that specialize in mortgage lending.

Of the $3.8 billion of previously triple-A rated securities, 8% were affirmed as a direct result of financial guaranty insurance policies, 69.1% were downgraded but are still in investment grade categories, and 23% were downgraded to below investment grade.

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