Fitch Downgrades Merrill MBS Classes

Eight classes of Merrill Lynch Mortgage Investors Inc. mortgage pass-through certificates have been downgraded by Fitch Ratings, and one other class has been placed on Rating Watch Negative.The downgrades were as follows: series 2002-NC1, class B1, from BBB to B-plus, and class B2, from BBB-minus to B; series 2002-AFC1 group 2, class BV-1, from BB to B; series 2003-HE1, class B3, from BB-minus to B; series 2003-WMC1, class B1, from BBB to BB-minus, and class B2, from BB-plus to B; and series 2003-WMC3, class B2, from BBB to BB, and class B3, from BBB-minus to BB-minus. Class B3 of series 2004-HE1 was placed on Rating Watch Negative. The rating agency also upgraded three classes and affirmed the ratings on 52 classes in 11 MLMI deals. The negative rating actions were attributed to a deterioration in the relationship between credit enhancement to expected losses.