Salomon MBS Classes Downgraded

Five classes in two issues of Salomon Brothers Mortgage Securities VII Inc. mortgage pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: series 2000-UP1, class B-4, from B to CCC; series 2001-UP2 (group 1 pool 1), class BF-4, from BB-minus to B; and series 2001-UP2 (group 2), class BV-3, from BBB-minus to BB, class BV-4, from CCC to CC, and class BV-5, from CC to C. In addition, Fitch upgraded two classes and affirmed the ratings on 26 classes in five SBMS issues. The downgrades were attributed to poor collateral performance and the deterioration of asset quality beyond original expectations. The series 2000-UP1 transaction is collateralized by 30-year fixed-rate mortgage loans, and the series 2001-UP2 deal consists of 30-year fixed-rate and 15-year adjustable-rate loans. The group 1 pool is further subdivided into subgroups IA and IB, which are not fully cross-collateralized but do provide limited cross-support in certain cases, Fitch said. The rating agency can be found online at http://www.fitchratings.com.