C-BASS MBS Classes Downgraded

Two classes from Credit Based Asset Servicing and Securitization LLC series 2006-SL1 have been downgraded by Fitch Ratings and placed on Rating Watch Negative, and three other classes have also been placed on Rating Watch Negative.Class B-4 was downgraded from BBB-minus to BB-minus, and class B-5 was downgraded from BB-plus to B. They were placed on Rating Watch Negative, along with classes B-1, B-2, and B-3. Fitch also affirmed the ratings on nine classes from the C-BASS deal. The negative rating actions reflect a deterioration in the relationship between credit enhancement and loss expectations, the rating agency said. The collateral consists mainly of second-lien residential mortgage loans extended to subprime borrowers, Fitch said.