Fitch Takes Various Actions on 55 RALI 2005-2007 Alt-A Deals

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken various rating actions on the 55 Residential Accredit Loans Inc. (RALI) transactions listed below:

--RALI 2005-QO4

--RALI 2005-QS1

--RALI 2005-QS10

--RALI 2005-QS11

--RALI 2005-QS12

--RALI 2005-QS13

--RALI 2005-QS14 Pool 1

--RALI 2005-QS14 Pool 2

--RALI 2005-QS15

--RALI 2005-QS16

--RALI 2005-QS17

--RALI 2005-QS2

--RALI 2005-QS3 Pool 1

--RALI 2005-QS3 Pool 2

--RALI 2005-QS4

--RALI 2005-QS5

--RALI 2005-QS6

--RALI 2005-QS7

--RALI 2005-QS8

--RALI 2005-QS9

--RALI 2006-QO7

--RALI 2006-QS1

--RALI 2006-QS10

--RALI 2006-QS11

--RALI 2006-QS12

--RALI 2006-QS13 15-YR

--RALI 2006-QS13 30-YR

--RALI 2006-QS14

--RALI 2006-QS15

--RALI 2006-QS16

--RALI 2006-QS17

--RALI 2006-QS18 15-YR

--RALI 2006-QS18 30-YR

--RALI 2006-QS2 Group I

--RALI 2006-QS2 Group II

--RALI 2006-QS3

--RALI 2006-QS4

--RALI 2006-QS5

--RALI 2006-QS6 15-yr

--RALI 2006-QS6 30-yr

--RALI 2006-QS7

--RALI 2006-QS8

--RALI 2006-QS9

--RALI 2007-QS4

--RALI 2007-QS1 Group I

--RALI 2007-QS1 Group II

--RALI 2007-QS10

--RALI 2007-QS11

--RALI 2007-QS2

--RALI 2007-QS3

--RALI 2007-QS5

--RALI 2007-QS6

--RALI 2007-QS7

--RALI 2007-QS8

--RALI 2007-QS9

A spreadsheet detailing Fitch's rating actions on the transactions in question is available on the Fitch Ratings web site at www.fitchratings.com under the following headers:

Structured Finance then RMBS then Research Highlights

The rating actions taken today reflect Fitch's analysis of expected default and loss from delinquent loans, in addition to projected losses from the currently performing pool. Fitch generates its expectations using its ResiLogic default and loss model. These expectations are adjusted based on actual performance to-date versus model projected performance. The model incorporates the impact of historical home price movements on mortgage performance, in addition to projecting further stress for many regions of the U.S. The model also reflects the demonstrated high default rates for loans that exhibit risk-layering.

Fitch is nearing completion of its review of the 2005-2007 Alt-A transactions. This review was completed in two separate phases. The first phase reviewed all mezzanine and subordinated bonds. The second phase, which is nearly completed, reviewed the senior bonds that, in many instances, required additional cash flow analysis to evaluate the risk of the various individual classes within the senior tranche. Most notably, the use of super-senior structures was considered in evaluating senior bonds.

Additional details are available in the following reports, also available at www.fitchratings.com under:

Structured Finance then RMBS then Special Reports

--'U.S. RMBS Alt-A Surveillance Criteria for Recent Vintages' (May 29, 2008):

--'Drivers of 2006-2007 Alt-A Collateral Performance' (May 7, 2008);

--'U.S. Alt-A RMBS Performance Deteriorating Rapidly, Fitch Initiates Extensive' (March 6, 2008);

--'Alt A Bonds Placed on Rating Watch Negative - Amended' (March 20, 2008).

Further information regarding current delinquency, loss, and credit enhancement statistics is also available at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.