More B&C Classes Downgraded by Fitch

Thirty-five additional classes of first-lien subprime mortgage pass-through certificates were downgraded by Fitch Ratings on Feb. 21 as a result of changes to its subprime loss forecasting assumptions. Fitch also affirmed the ratings on classes with outstanding balances of over $1.4 billion. The securities affected by the latest downgrades were: 13 classes from one Bear Stearns Asset Backed Securities I Trust deal; 12 classes from one GS Mortgage Securities Corp. deal; and 10 classes from one Option One deal. The rating actions were attributed to changes to Fitch's subprime loss forecasting assumptions that "better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness."