Fitch Downgrades Over $1.25B of Subprime MBS

More than 90 classes of subprime residential mortgage-backed securities with outstanding balances totaling over $1.25 billion were downgraded by Fitch Ratings on Aug. 3.Fitch also affirmed the ratings on classes with outstanding balances of more than $10.5 billion. Among the downgrades were the following mortgage pass-through certificates: 28 classes from three issues of HSI Asset Securitization Corp.; 15 classes from three issues of Mortgage Asset Securitization Transactions Asset Back Securities Trust; 15 classes from two Citigroup issues; and 12 classes from three issues of Asset Backed Securities Corp. The rating actions were based on changes to Fitch's subprime loss forecasting assumptions, which "better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness," the rating agency said. Fitch reported that as of the end of the day on Aug. 3, it had downgraded 389 such classes (from subprime RMBS deals placed Under Analysis on July 12) with an outstanding balance of $7 billion, and affirmed the ratings on 721 classes with an outstanding balance of $58 billion. Fitch can be found online at http://www.fitchratings.com.