MASTR ABS Classes Downgraded

Seven classes of certificates from two deals issued by MASTR Asset Backed Securities Trust in 2006 have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2006-FRE1, class M-7, from Baa1 to Ba1, class M-8, from Baa2 to B3, and class M-9, from Baa3 to Caa3; and series 2006-FRE2, class M-8, from Baa2 to Ba2, class M-9, from Baa3 to B2, class M-10, from Ba1 to Caa1, and class M-11, from Ba2 to Caa3. The downgrades stemmed from credit enhancement levels (including excess spread) that are deemed too low in view of projected losses, Moody's said. The series 2006-FRE1 transaction is backed entirely by first lien adjustable- and fixed-rate subprime mortgage loans, while series 2006-FRE2 contains a small fraction (5.9% at closing) of second-lien subprime loans as well. Moody's can be found online at http://www.moodys.com.