Fitch Ratings has placed 2,972 classes of 2006 and 2007 subprime residential mortgage-backed securities (totaling approximately $139 billion) on Rating Watch Negative. Fitch said the actions resulted from an adjustment to its loss projections for subprime RMBS stemming from a significant deterioration in subprime mortgage performance in recent months. The rating agency attributed the deterioration to accelerating home price declines caused partly by "the dramatic contraction in the mortgage origination and securitization markets." Fitch said it has also increased its loss expectations for U.S. subprime RMBS backed predominantly by first-lien mortgages originated in 2006 and the first half of 2007. The rating agency can be found online at http://www.fitchratings.com.

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