Fitch Downgrades Subprime Securities

Eighteen classes of mortgage-backed securities from several issuers have been downgraded by Fitch Ratings as a result of changes to its subprime loss forecasting assumptions.Fitch also placed nine classes on Rating Watch Negative and affirmed the ratings on classes with outstanding balances of over $3 billion. Among the securities affected by the latest downgrades were: 11 classes from four issues of Soundview Home Equity Loan Trust asset-backed certificates; three classes from Fremont Home Loan Trust mortgage pass-through certificates, series 2005-1; two classes from Meritage Mortgage Corp. asset-backed certificates, series 2005-2; one class from UBS MASTR Asset Backed Securities mortgage pass-through certificates, series 2005-NC1; and one class from Terwin Mortgage Trust asset-backed certificates, series 2005-5SL. 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." The rating agency can be found online at http://www.fitchratings.com.