Nomura NIM Classes Downgraded

Five classes from two Nomura Home Equity Loan Net Interest Margin notes have been downgraded by Fitch Ratings. The downgrades were as follows: Nomura Home Equity Loan NIM 2006-FM2, class N-1, from BBB to C/DR6, and class N-2, from B to C/DR6 (and removed from Rating Watch Negative); and Nomura Home Equity Loan NIM 2006-HE3, class N-1, from BBB to C/DR6, and classes N-2 and N-3, from B to C/DR6. Fitch also lowered the Distressed Recovery rating of class N-3 in series 2006-FM2 from DR5 to DR6. "The rating actions reflect actual pay-down performance of the NIM securities to date compared to initial projections, as well as changes that Fitch previously made to its subprime loss forecasting assumptions for the underlying transactions," the rating agency said.