ABSC Classes Downgraded

Three 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-minus to B (and placed on Rating Watch Negative); series 2003-HE1, class M-3, from BB-minus to B; and series 2005-HE5, class M12, from BB to B. Fitch also placed class M-2 of series 2002-HE1 on Rating Watch Negative. In addition, Fitch affirmed the ratings on 14 classes in the three ABSC deals. The rating agency attributed the downgrades to a deterioration in the relationship between loss expectations and credit enhancement. The transactions consist primarily of fixed- and adjustable-rate subprime mortgage loans on one- to four-family properties.