Fitch Downgrades Subprime Securities

Eighteen classes of mortgage-backed securities from three issuers were downgraded by Fitch Ratings on Dec. 27 as a result of changes to its subprime loss forecasting assumptions.Fitch also placed 15 classes on Rating Watch Negative and affirmed the ratings on classes with outstanding balances of more than $2.6 billion. The securities affected by the latest downgrades were: nine classes of HASCO mortgage pass-through certificates; five classes of Soundview Home Equity Loan Trust asset-backed certificates; and four classes of Ace 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." Fitch can be found online at http://www.fitchratings.com.