Ameriquest HEL Classes Downgraded

Eight classes from five Ameriquest Mortgage Securities Inc. home equity issues have been downgraded by Fitch Ratings.The downgrades were as follows: series 2002-3, class M-4, from B to C; series 2002-4, class M-4, from BBB-minus to BB-minus; series 2003-1, class M-3, from BBB to BBB-minus, and class M-4, from BBB-minus to BB; series 2003-2, class M-3, from BBB to BBB-minus, and class M-4, from BBB-minus to BB; and series 2003-AR2, class M-3, from BBB to BB, and class M-4, from BBB-minus to BB-minus. Fitch also assigned a DR4 Distressed Recovery rating to class M-4 of series 2002-3. In addition, Fitch upgraded two Ameriquest classes and affirmed the ratings on eight classes from the five Ameriquest deals. The downgrades were attributed to a deterioration in the relationship between credit enhancement and expected losses.