Two classes of Asset Backed Securities Corp. subprime mortgage pass-through certificates have been placed on Rating Watch Negative by Fitch Ratings.The affected securities were class M-11 of series 2006-HE2 and class M-10 of series 2006-HE4. In addition, Fitch affirmed the ratings on 55 classes in five ABSC deals. Fitch attributed the negative rating actions to a deterioration in the relationship between loss expectations and credit enhancement. The transactions consist chiefly of fixed- and adjustable-rate subprime residential mortgage loans.
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