Fitch also downgraded three classes from Securitized Asset Backed Receivables series 2005-FR3 as a result of changes in the rating agency's subprime loss forecasting assumptions.The downgrades were as follows: class B-2, from A-minus to BBB-plus (and placed on Rating Watch Negative); class B-3, from BBB-plus to BB-plus; and class B-4, from BBB-minus to B-plus. Fitch also placed classes M-3 and B-1 on Rating Watch Negative and affirmed the ratings on three other classes in the deal. The revised assumptions in Fitch's subprime loss model "better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness," the rating agency said.
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