Bear Stearns ABS Classes Downgraded

Eight classes from two issues of Bear Stearns Asset Backed Securities Inc. mortgage-backed securities have been downgraded by Fitch Ratings.The downgrades were as follows: series 2004-2, class M-2, from A to BBB-plus, class M-3, from BBB to BB, and class B, from BBB-minus to B; and series 2005-2, class M-3, from A-minus to BBB-plus, class M-4, from BBB-plus to BBB-minus, class M-5, from BBB to BBB-minus, class M-6, from BBB-minus to BB, and class M-7, from BB to C/DR4. Fitch also affirmed the ratings on five other classes in the two deals. The downgrades were attributed to deterioration in the relationship between credit enhancement and loss expectations. The securitizations are backed by fixed- and adjustable-rate, first- and second-lien mortgage loans. The rating agency can be found online at http://www.fitchratings.com.