Eight classes of New Century Home Equity Loan Trust series 2006-S1 have been downgraded by Fitch Ratings, four of which have also been placed on Rating Watch Negative.The downgrades were as follows: class M-1, from AA to A-minus; class M-2, from A-plus to BBB; class M-3, from A to BB; class M-4, from A-minus to B; class M-5, from BBB-plus to C/DR5; class M-6, from BBB to C/DR5; class M-7, from BB to C/DR6; and class M-8, from BB-minus to C/DR6. Fitch also placed classes M-1 through M-4, as well as classes A-1, A-2a, and A-2b, on Rating Watch Negative, and removed class M-6 from Rating Watch Negative. The negative rating actions were attributed to the fact that credit enhancement levels may be too low to maintain current rating levels in view of projected losses. The transaction is backed by subprime second-lien loans. Fitch can be found online at http://www.fitchratings.com.

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