Fremont MBS Classes Downgraded

Six classes of Fremont Home Loan Trust's residential mortgage-backed certificates, series 2006-B pool 2, have been downgraded by Fitch Ratings.The downgrades were as follows: class SL-M5, from A-plus to BBB-minus; class SL-M6, from A to BB-minus; class SL-M7, from A-minus to B; class SL-M8, from BBB-plus to C/DR6; class SL-M9, from BBB-plus to C/DR6; and class SL-B1, from BBB to C/DR6. Classes SL-M5, SL-M6, and SL-M7 were placed on Rating Watch Negative, as were classes SL-M3 and SL-M4 of pool 2, classes M-9, M-10, and M-11 of pool 1, and class M-6 of series 2003-B. Fitch also upgraded four classes from the Fremont deals and affirmed the ratings on 18 classes in the subprime transactions. The downgrades were attributed to deterioration in the relationship between credit enhancement and expected losses.