Fitch Downgrades More B&C Classes

Seventy-eight additional classes of first-lien subprime mortgage pass-through certificates were downgraded by Fitch Ratings on Feb. 20 as a result of changes to its subprime loss forecasting assumptions. Fitch also affirmed the ratings on classes with outstanding balances of more than $800 million. The securities affected by the latest downgrades were 67 classes from five Long Beach deals and 11 classes from one Washington Mutual deal. The rating actions were attributed to changes to Fitch's subprime loss forecasting assumptions that "better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness." Fitch can be found online at http://www.fitchratings.com.