Fitch Downgrades Bear Subprime ABS Classes

Meanwhile, three classes from Bear Stearns Asset Backed Securities 2005-AQ1 mortgage pass-through certificates were downgraded by Fitch Ratings as a result of changes in the rating agency's subprime loss forecasting assumptions.The downgrades were as follows: class M-6, from BBB-minus to BB-plus; class M-7, from BB-plus to BB-minus; and class M-8, from BB to B-plus. Fitch also affirmed the ratings on six other classes in the deal. The revised assumptions in Fitch's subprime loss model "better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness," the rating agency said.