SASCO MBS Class Downgraded

Class B3 of Structured Asset Securities Corp. residential mortgage-backed certificates, series 2001-2, has been downgraded from BB to B by Fitch Ratings.In addition, Fitch affirmed the ratings on three other classes in the transaction. The downgrade was attributed to high monthly pool losses and delinquency levels. As of May 25, 13.66% of the pool was over 90 days delinquent, and cumulative losses were 0.98% of the original pool balance, the rating agency said. "It should be noted, however, that concurrent with May's losses of nearly $500,000, the percentage of loan principal in the most severe delinquency buckets -- foreclosure and real estate owned -- fell precipitously from 14% down to 7%," Fitch reported. Estimated losses associated with the liquidation of such loans would result in the writedown of just over 50% of the remaining B4 bond, the rating agency said.