Four classes from two issues of NovaStar mortgage pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: NovaStar 2003-1, class M-3, from BBB to BB; and NovaStar 2004-4, class B-2, from A-minus to BBB-plus, class B-3, from BBB to BBB-minus, and class B-4, from BBB-minus to B. Fitch also affirmed the ratings on 11 other classes in the two transactions. The downgrades were attributed to deterioration in the relationship between credit enhancement and expected losses. The collateral consists of first- and second-lien subprime mortgage loans.

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