Fitch Downgrades More B&C Classes

More than 100 additional classes of subprime mortgage pass-through certificates were downgraded by Fitch Ratings on March 27 as a result of changes to its subprime loss forecasting assumptions. Fitch also placed 10 classes of subprime pass-throughs on Rating Watch Negative and affirmed the ratings on classes with outstanding balances of more than $1.4 billion. The securities affected by the latest downgrades were: 37 classes from three issues of Aegis mortgage pass-throughs; 21 classes from two issues of GE pass-throughs; 18 classes from two issues of Ace pass-throughs; 10 classes from one issue of Fremont pass-throughs; 10 classes from one issue of Option One Mortgage Loan Trust pass-throughs; and nine classes from one issue of Residential Asset Mortgage Products Trust pass-throughs. 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."