``Fitch Ratings has downgraded six tranches from five hedge fund collateralized fund obligations (HF CFOs). All 22 tranches remain on Rating Watch Negative... These rating actions follow Fitch's reassessment of the macro risks that affect its analysis of HF CFOs - notably higher observed market volatility, reduced liquidity, and limited transparency in underlying hedge funds. Accordingly, Fitch is no longer of the opinion that HF CFOs have risk characteristics that are consistent with an 'AAA' rating. ''

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