Eight classes of mortgage securities issued by Morgan Stanley series 2006-5AR have been downgraded by Fitch Ratings.The downgrades were as follows: class M-4, from A-plus to A; class M-5, from A to A-minus; class M-6, from A to A-minus; class M-7, from A-minus to BBB-plus; class M-8, from BBB-plus to BBB-minus; class M-9, from BBB to BB; class B-1, from BB to C/DR4; and class B-2, from B to C/DR5. Fitch also affirmed the ratings on four other classes in the deal. The downgrades were attributed to a deterioration in the relationship between credit enhancement and expected losses. The collateral consists of fixed- and adjustable-rate, first-lien, alternative-A loans. Fitch can be found on the Web at http://www.fitchratings.com.

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