ABSC Classes Downgraded

Four classes of Asset Backed Securities Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings, and two classes have been placed on Rating Watch Negative.The downgrades were as follows: series 2002-HE1, class B, from BBB to BBB-minus; series 2002-HE2, class B, from BBB to BBB-minus; series 2002-HE3, pool 1 class I-M4, from BBB-minus to BB, and pool 2 class II-M4, from BBB-minus to BB. Classes M-3 and M-4 of series 2003-HE1 were placed on Rating Watch Negative. Fitch also removed four classes of series 2002-HE3 from Rating Watch Negative: classes I-M3 and I-M4 of pool 1 and classes II-M3 and II-M4 of pool 2. In addition, Fitch upgraded four classes and affirmed the ratings on 55 classes in 12 ABSC deals. The rating agency attributed the downgrades to a deterioration in the relationship between loss expectations and credit enhancement. The transactions consist of fixed- and adjustable-rate subprime mortgage loans on one- to four-family properties. Fitch can be found online at http://www.fitchratings.com.