Eight classes from six Saxon Asset Securities Trust issues have been downgraded by Fitch Ratings.The downgrades were as follows: series 1999-5, class BF-1, from BB-minus to B-minus; series 2000-2 group 1, class MF-2, from A to BBB; series 2000-3 group 1, class MF-2, from BBB to BB; series 2000-4 group 1, class MF-2, from BBB to BB; series 2001-1 group 1, class MF-2, from BBB to BB; and series 2001-3, class M-1, from AA to A, class M-2, from A to BBB, and class B, from BBB to BB. The downgrades reflect "deterioration in the relationship between credit enhancement and future loss expectations," Fitch said. All the loans -- fixed- and adjustable-rate subprime loans secured by first and second liens -- were originated or acquired by Saxon Mortgage Inc., Glen Allen, Va. "Although losses and delinquency have generally been higher than initially expected, the bonds in transactions prior to series 2001-3 have benefited from trigger requirements, which have prevented credit enhancement from stepping down and overcollateralization from being released," the rating agency said. "It is Fitch's expectation that the triggers in these transactions will continue to fail, and credit enhancement will continue to grow as a percentage of the outstanding pool balance."

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