ABFC Subprime MBS Classes Downgraded

Eight classes from two issues of Asset Backed Funding Corp. subprime mortgage pass-through certificates have been downgraded by Fitch Ratings, and two classes from two other issues have been placed on Rating Watch Negative.The downgrades were as follows: series 2003-OPT1, class M-5, from BBB-plus to BB-plus, and class M-6, from BBB to B; and series 2004-FF1, class M-1, from AA to AA-minus, class M-2, from A to BBB-plus, class M-3, from A-minus to BBB-minus, class M-4, from BBB-plus to BB-plus, class M-5, from BBB to BB, and class M-6, from BBB-minus to BB-minus. The securities placed on Rating Watch Negative were class M-5 of series 2003-AHL1 and class M-6 of series 2004-OPT3. Fitch also affirmed the ratings on 19 classes from the four ABFC securitizations. The negative rating actions reflect the deterioration of credit enhancement relative to expected losses, the rating agency said. The underlying collateral for the transactions consists of fixed- and adjustable-rate subprime mortgage loans secured by first and second liens.