Two classes of Asset Backed Securities Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings.Class 1-M4 of series 2002-HE3 group 1 was downgraded from B to B-minus/DR1, and class 2-M4 of series 2002-HE3 group 2 was downgraded from B to B-minus/DR1. In addition, Fitch upgraded two classes in two ABSC deals, affirmed the ratings on six classes, and lowered the Distressed Recovery rating of class B1F of series 1999-LB1 group 1 from DR1 to DR2. The rating agency attributed the downgrades to a deterioration in the relationship between credit enhancement and expected losses.

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