SACO MBS Class Downgraded

One class of SACO I Trust second-lien mortgage-backed securities has been downgraded by Fitch Ratings, and four classes have been placed on Rating Watch Negative.Class B-4 of series 2005-2 was downgraded from BB to B, and the following classes were placed on watch: class B-3 of series 2005-1, class B-3 of series 2005-2, class B-4 of series 2005-3, and class B-4 of series 2005-4. The downgrade and Rating Watch placements reflect a decline in overcollateralization and a belief that the OC will not reach the target amounts for the five classes, Fitch said. "The OC deterioration is a result of reduction in the dollar amount of excess spread due to much faster-than-expected prepayments and rising interest rates," the rating agency said. Fitch can be found online at http://www.fitchratings.com.