SACO MBS Classes Downgraded

Six classes of SACO I Trust second-lien mortgage-backed securities have been downgraded by Fitch Ratings, and four classes have been removed from Rating Watch Negative.The downgrades were as follows: class B-3 of series 2005-1, from BB to B and removed from Rating Watch Negative; class B-3 of series 2005-2, from BBB-minus to BB-minus and removed from Rating Watch Negative; class B-4 of series 2005-2, from B to CCC and assigned a Distressed Recovery rating of DR3; class B-3 of series 2005-3, from BB to B-plus and removed from Rating Watch Negative; class B-4 of series 2005-4, from BB to B and removed from Rating Watch Negative; and class B-5 of series 2005-WM1, from BB to B. The downgrades reflect a decline in overcollateralization stemming from losses associated with the mortgage pools as well as reduced excess spread resulting from "much faster-than-expected prepayments and rising interest rates," the rating agency said. Fitch can be found online at http://www.fitchratings.com.