Aegis ABS Classes Downgraded

Three classes from two Aegis Asset Backed Securities Trust securitizations have been downgraded by Fitch Ratings.The downgrades were as follows: series 2003-1, class M2, from A to BBB-plus, and class B1, from BB to CC (and assigned a Distressed Recovery rating of DR3); and series 2003-2, class B, from BBB to BB-plus (and removed from Rating Watch Negative). Fitch also upgraded one class in series 2003-2 and affirmed the ratings on three other classes in the two transactions. The downgrades were attributed to deterioration in the relationship between credit enhancement and loss expectations, the rating agency said. The collateral pools for both deals consist of subprime residential mortgage loans.