Fitch Downgrades More B&C Classes

Ninety-three additional classes of subprime mortgage pass-through certificates were downgraded by Fitch Ratings on April 11 as a result of changes to its subprime loss forecasting assumptions. Fitch also placed 11 classes on Rating Watch Negative and affirmed the ratings on classes with outstanding balances of more than $3.2 billion. The pass-through securities affected by the latest downgrades were: 31 classes from four issues by HSBC Home Equity; 22 classes from three issues by Saxon Asset Securities Trust; 22 classes from three issues by Fremont Home Loan Trust; 13 classes from three issues by Merrill Lynch Mortgage Investors; and five classes from one issue by Specialty Underwriting and Residential Finance Trust. 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.