Four classes of Specialty Underwriting & Residential Finance asset-backed certificates have been downgraded by Fitch Ratings, and two have been placed on Rating Watch Negative.The downgrades were as follows: series 2003-BC1, class B-1, from BBB-plus to BB (and placed on Rating Watch Negative), and class B-2, from BB to C/DR6; and series 2003-BC2, class B-1, from BBB-plus to BB (and placed on Rating Watch Negative), and class B-2, from BBB to CC/DR3. In addition, Fitch affirmed the ratings on 11 classes from three SURF transactions. The negative rating actions were attributed to a deteriorating relationship between credit enhancement and loss expectations. SURF acts as program administrator for the seller, Merrill Lynch Mortgage Lending Inc., and its loan acquisition program facilitates the purchase by the Merrill Lynch company of eligible nonconforming loans from various SURF-approved originators, Fitch said.

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