Fitch Downgrades Subprime Securities

Twenty-three classes of mortgage-backed securities from four issuers have been downgraded by Fitch Ratings as a result of changes to its subprime loss forecasting assumptions.Fitch also placed two classes on Rating Watch Negative and affirmed the ratings on classes with outstanding balances of about $2.4 billion. Securities affected by the latest downgrades were as follows: 11 classes from two issues of HASCO mortgage pass-through certificates; six classes from two issues of Fieldstone mortgage pass-throughs; four classes of RASC mortgage pass-throughs; and two classes of NovaStar Mortgage Funding Trust mortgage pass-throughs. The rating actions were attributed to changes in 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.