Seven classes from two Meritage Mortgage Loan Trust securitizations have been downgraded by Fitch Ratings, and two other classes have been placed on Rating Watch Negative.The downgrades were as follows: series 2004-1, class M-6, from BBB-plus to BBB, class M-7, from BBB to BB-plus, class M-8, from BB-minus to B, and class B-1, from B-plus to C (and assigned a Distressed Recovery rating of DR4); and series 2004-2, class M-8, from BBB-plus to BB-plus, class M-9, from BBB to BB, and class M-10, from BB-plus to B-plus. The securities placed on Rating Watch Negative were classes M-6 and M-7 of series 2004-2. Fitch said the negative rating actions were due to a deterioration in the relationship between credit enhancement to expected losses.
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