Standard & Poor's placed the ratings on 17 tranches from eight U.S. cash flow and hybrid ABS CDOs on CreditWatch with negative implications after the downgrade of 418 classes of U.S. RMBS transactions backed by closed-end second-lien mortgages.

Seven out of the eight CDO transactions on watch were issued in 2006; the other transaction was issued in 2003. Two of the eight CDOs are high-grade structured finance ABS CDOs, with primarily 'AAA' and 'AA' rated collateral, and six are mezzanine Structured Finance ABS CDOs, with collateral primarily rated 'A' and 'BBB.'

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