Class M-3 of Ace Securities Corp. mortgage-backed securities, series 2003-HE3, has been downgraded from BBB to BB by Fitch Ratings, and three classes from two Ace subprime transactions have been placed on Rating Watch Negative.The securities placed on rating watch were class M-2 of series 2003-HE3 and classes M-5 and M-6 of series 2003-FM1. In addition, the rating agency affirmed the ratings on six other classes from the two transactions. Fitch said the negative rating actions were taken because monthly losses exceeded the available excess spread in recent months, causing a deterioration in the amount of overcollateralization. The rating agency can be found on the Web at http://www.fitchratings.com.
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