Two classes of Structured Asset Security Corp. residential mortgage-backed certificates, series 2005-S5, have been downgraded by Fitch Ratings and removed from Rating Watch Negative.Class B3 was downgraded from BB to CCC and assigned a distressed recovery rating of DR2; and class B4 was downgraded from BB-minus to C and assigned a distressed recovery rating of DR6. In addition, Fitch affirmed 12 other classes in the transaction. The downgrades were attributed to a deterioration in the relationship between credit enhancement and expected losses. Faster-than-expected prepayment rates and rising interest rates have hurt the generation of excess spread and the growth of overcollateralization, Fitch said. The mortgage pool consists of conventional, fixed-rate, fully amortizing and balloon, second-lien residential mortgage loans. Fitch can be found online at http://www.fitchratings.com.

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