Standard & Poor's lowered ratings today on 23 European CDO of ABS tranches. The agency said most of the affected tranches were originally placed on CreditWatch negative on 7 May 2008, reflecting exposure to US CDOs of ABS and residential MBS. The actions also reflect revisions to their recovery rate assumptions for CDOs, which was published in April.

The deals in question include lowered ratings on Palmer Square $1.25 billion ABS floating rate notes (A2, B, C and D tranches), a downgrade on Cairn High Grade ABS CDO I $1 billion floating rate notes (A2, B, C and E tranches), and a cut on Palmer Square 2 $2.01 billion asset-backed floating rate notes (A1, A2, A3, B and C tranches).