First Franklin MBS Classes Downgraded

Two classes of First Franklin Financial Corp. residential mortgage-backed certificates have been downgraded by Fitch Ratings, and three classes have been placed on Rating Watch Negative.Class M-8 of series 2004-FFH1 was downgraded from BBB to BB, and class M-9 was downgraded from BBB-minus to BB-minus. Class M-7 of the series and classes B-1 and B-2 of series 2004-FFH2 were placed on Rating Watch Negative. In addition, Fitch affirmed the ratings on 16 classes from the two transactions. The negative rating actions were attributed to a deteriorating relationship between credit enhancement and expected losses. The collateral for the transactions consists of first-lien subprime loans. Fitch can be found online at http://www.fitchratings.com.