Fitch Downgrades Over $2.1B of Subprime MBS

More than 100 classes of subprime residential mortgage-backed securities with outstanding balances totaling over $2.1 billion were downgraded by Fitch Ratings on Aug. 6.Fitch also affirmed the ratings on classes with outstanding balances of more than $15 billion. Among the downgrades were the following mortgage pass-through certificates: 65 classes from nine issues of Ameriquest Mortgage Securities Inc.; 24 classes from four issues of Fremont Home Loan Trust; and 13 classes from two issues of CDC/IXIS 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. 6, it had downgraded 491 such classes (from subprime RMBS deals placed Under Analysis on July 12) with an outstanding balance of $9 billion, and affirmed the ratings on 850 classes with an outstanding balance of $74 billion. Fitch can be found online at http://www.fitchratings.com.