Fitch Downgrades More B&C Classes

More than 250 additional classes of subprime mortgage pass-through certificates were downgraded by Fitch Ratings on April 8 as a result of changes to its subprime loss forecasting assumptions. Fitch also placed 32 classes of subprime pass-throughs on Rating Watch Negative, removed seven classes from Rating Watch Negative, and affirmed the ratings on classes with outstanding balances of approximately $7 billion. The pass-through securities affected by the latest downgrades were: 80 classes from 12 issues by Morgan Stanley; 60 classes from seven issues by Long Beach Mortgage Co.; 36 classes from five issues by J.P. Morgan Mortgage Acquisition Corp.; 31 classes from three issues by People's Choice Home Loan; 29 classes from five issues by ACE Securities Corp. Home Equity Loan Trust; 13 classes from two issues by GSAMP; and four classes from one issue by Renaissance. 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.