Fitch Eyes Societe Generale MBS Classes

Seven classes from two Societe Generale Mortgage Securities issues have been placed on Rating Watch Negative by Fitch Ratings.The affected classes are as follows: series 2006-FRE1, classes M-9, M-10, M-11, and M-12; and series 2006-FRE2, classes M-9, M-10, and M-11. In addition, Fitch affirmed the ratings on 18 classes from the two deals. The negative rating actions were attributed to "early trends" in the relationship between serious delinquency and credit enhancement. "Both transactions have delinquency figures well above the industry average," the rating agency said. The transactions are backed by 30-year fixed- and adjustable-rate mortgages originated or acquired by Fremont Investment and Loan.