RASC Subprime Classes Downgraded

Five classes from several issues of Residential Asset Securities Corp. mortgage pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: series 2003-KS3 total group 1 & 2, class M-1, from AA-plus to A-plus (and remains on Rating Watch Negative), and class M-2, from A to BBB-minus (and placed on Rating Watch Negative); series 2004-KS3 total 2-3, class M-II-3, from BBB to BB (and placed on Rating Watch Negative); series 2004-KS8 group 2, class M-II-3, from BBB to BB; and series 2004-KS11, class B, from BB-plus to B. Fitch also placed class M-II-2 of series 2004-KS3 total 2-3, class M-II-2 of series 2004-KS8 group 2, and class M-6 of series 2004-KS11 on Rating Watch Negative and affirmed the ratings on 17 other classes in RASC deals. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and loss expectations. The collateral in the deals consists of first- and second-lien subprime mortgage loans.