First Franklin MBS Classes Downgraded

Eight classes from four First Franklin Financial Corp. residential mortgage-backed security transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 2001-FF2, class M-1, from AA to A, class M-2, from BBB-minus to BB, and class M-3, from BB-minus to B; series 2002-FF2, class M-2, from BBB-minus to BB-plus; series 2003-FF2, classes M-4-A and M-4-F, from BBB-plus to BBB; and series 2003-FF3, class M-4, from BBB-plus to BBB-minus, and class B, from BBB to BBB-minus. In addition, 12 classes from six deals were placed on Rating Watch Negative, and the ratings on over 200 classes from more than 20 deals were affirmed. The downgrades were attributed chiefly to "negative trends" in the relationship between delinquency and credit enhancement. The collateral for the transactions consists of subprime mortgage loans secured by first liens on residential properties. Fitch can be found online at http://www.fitchratings.com.