MSDW MBS Classes Downgraded

Seven classes from four Morgan Stanley Dean Witter Capital I Inc. mortgage-backed security transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 2001-AM1, class M-2, from AA to A-plus, and class B-1, from BBB-minus to BB-minus; series 2002-AM1, class M-2, from AA to A, and class B-1, from BBB-minus to BB; series 2002-AM2, class B-1, from BBB-minus to BB-plus, and class B-2, from BBB-minus to BB-plus; and series 2002-AM3, class B-2, from BBB-minus to BB-plus. In addition, Fitch affirmed the ratings on 10 other classes in the deals. The downgrades were attributed to deterioration in the relationship between credit enhancement and loss expectations. The loans consist of fixed-rate and adjustable-rate mortgages extended to subprime borrowers and are secured by first and second liens, primarily on one- to four-family residential properties, Fitch said. The rating agency can be found online at http://www.fitchratings.com.