Classes M-3 and M-4 from Asset-Backed Securities Corp. mortgage-pass through certificates series 2002-HE3 have been placed on Rating Watch Negative by Fitch Ratings.The rating actions were attributed to relatively high monthly losses that have been greater than the available excess spread, resulting in a deterioration of the amount of overcollateralization. The group 2 overcollateralization target amount has stepped down, while the group 1 OC target amount has not been allowed to step down due to a cumulative-loss trigger event, Fitch said. "The issuer and the trustee are currently reviewing the cumulative-loss trigger event language, which they believe may have been erroneously drafted," the rating agency reported. "If the trigger language were to be corrected (as proposed), group 1 would pass the trigger test and the OC target amount would be allowed to step down." Fitch can be found online at http://www.fitchratings.com.

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