Merrill MBS Classes Downgraded

Seven classes from five Merrill Lynch Mortgage Investors Inc. subprime securitizations have been downgraded by Fitch Ratings.The downgrades were as follows: series 2002-AFC1 group 1, class BF-1, from BB to B-plus, and group 2, class BV-1, to BB (and removed from Rating Watch Negative); series 2003-HE1, class B2, from BBB-plus to BB-plus, and class B3, from BBB-minus to BB-minus; series 2003-WMC1, class B2, from BBB-minus to BB-plus; series 2003-WMC2, class B2, from BBB to BB-plus; and series 2005-SL1, class B5, from BBB-minus to BB-plus. The rating agency also placed classes B1 and B2 of series 2002-NC1 and classes B4 and B5 of series 2005-HE1 on Rating Watch Negative. In addition, four classes from four of the transactions were upgraded and the ratings on 39 other classes from eight MLMI subprime deals were affirmed. The negative rating actions were attributed to a deterioration in the relationship between credit enhancement and loss expectations.