Park Place Subprime Classes Downgraded

Three classes of Park Place subprime mortgage-backed securities have been downgraded by Fitch Ratings.The downgrades were as follows: series 2004-MHQ1, class M-10, from BB-plus to B (and removed from Rating Watch Negative); and series 2004-WHQ1, class M-9, from BBB-minus to BB-plus, and class M-10, from BB-plus to BB (and removed from Rating Watch Negative). Fitch also placed class M-8 of series 2004-MHQ1 and classes M-8 and M-9 of series 2004-WHQ2 on Rating Watch Negative and affirmed the ratings on 25 classes from the three issues. The negative rating actions were attributed to losses that have exceeded excess spread, causing deterioration in the amount of overcollateralization. The collateral consists of closed-end, first-lien subprime mortgage loans.