SACO MBS Classes Downgraded

Twenty classes from 11 deals issued by SACO I Trust have been downgraded by Fitch Ratings, and one class was placed on Rating Watch Negative.In addition, Fitch affirmed the ratings on 94 classes in the 11 deals. The negative rating actions were based on "a decline in the overcollateralization amount, stemming from losses associated with the mortgage pools and exacerbated by reduced excess spread resulting from much faster-than-expected prepayments and rising interest rates," Fitch said. The transactions are backed chiefly by fixed-rate, closed-end second-lien residential mortgage loans.