ABSC Classes Downgraded

Five classes of Asset Backed Securities Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings, and two have been assigned Distressed Recovery ratings.The downgrades were as follows: series 2001-HE1, class M-2, from BBB-plus to BBB-minus, and class B, from BB to B-plus; series 2002-HE2, class B, from BB-minus to CCC; and series 2003-HE1, class M-3, from BB to BB-minus, and class M-4, from BB-minus to C. Class B of series 2002-HE2 was assigned a Distressed Recovery rating of DR2, and class M-4 of series 2003-HE1 was assigned a rating of DR5. (The ratings range from DR1, the highest, to DR6 to designate a transaction's recovery prospects.) In addition, Fitch upgraded two classes and affirmed the ratings on four classes in four 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.