Fremont MBS Classes Downgraded

Three classes from two Fremont Home Loan Trust deals issued in 2005 have been downgraded by Moody's Investors Service, and three classes from another deal have been has placed under review for possible downgrade.The downgrades were as follows: series 2005-1, class B-1, from Ba1 to Ba3, and class B-2, from Ba2 to B3; and series 2005-B, class M-11, from Ba1 to B2. Classes M-9, M-10, and M-11 of series 2006-B were placed on review, and Moody's confirmed the rating on one class from series 2005-1. The negative rating actions were attributed to credit enhancement levels (including excess spread) that are deemed too low in view of projected losses. The transactions are backed by first- and second-lien adjustable- and fixed-rate mortgage loans.