Four classes from two GS Mortgage Securities Corp. deals issued in 2005 have been downgraded by Fitch Ratings. The downgrades were as follows: series 2005-SD1, class M-3, from BBB-plus to BBB, class B-1, from BBB to BB, and class B-2, from BBB-minus to B (and placed on Rating Watch Negative); and series 2005-SD2, class B-4, from BBB to BB. Fitch also affirmed the ratings on 10 classes in the two deals. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and expected losses. The collateral consists of mortgage loans secured by residential properties or manufactured homes.

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