Fitch Downgrades More B&C Classes

Nearly 140 additional classes of subprime mortgage pass-through certificates were downgraded by Fitch Ratings on April 1 as a result of changes to its subprime loss forecasting assumptions. Fitch also placed 17 classes of subprime pass-throughs on Rating Watch Negative, removed nine from Rating Watch Negative, and affirmed the ratings on classes with outstanding balances of over $2.6 billion. The securities affected by the latest downgrades were: 47 classes from six issues of Citigroup Mortgage Loan Trust mortgage pass-throughs; 34 classes from four issues of MASTR Asset Backed Securities Trust pass-throughs; 31 classes from four issues of IXIS Real Estate Capital Trust pass-throughs; and 27 classes from six issues of Morgan Stanley 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." Fitch can be found online at http://www.fitchratings.com.