Fitch Upgrades Two U.S. Subprime RMBS Classes

NEW YORK--()--Fitch Ratings has upgraded two senior classes in two subprime RMBS transactions. Both classes are first priority in sequential-pay cashflow structures and both are expected to pay off in full within the next 12 months based on recent mortgage pool trends.

Fitch's rating actions are as follows:

Stanwich Asset Acceptance Company, L.L.C. 2007-FRE1

--A-1 (144527AA6) upgraded to 'Bsf' from 'CCsf'; assigned Stable Outlook.

Securitized Asset Backed Receivables 2006-WM1:

--A-1A (81375WKL9) upgraded to 'Bsf' from 'CCCsf'; assigned Stable Outlook.

Despite the relatively short remaining lives under base-case assumptions, the bonds were not upgraded beyond 'Bsf' due to credit sensitivities under stressed changes to interest rates, prepayment rates and loss-timing assumptions.

These actions were reviewed by a committee of Fitch analysts.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria & Related Research:

--'Fitch Resolves Watch Status on Various RMBS' (Dec. 5, 2012);

--'U.S. Prime Pre-2005 RMBS: Not What It Used to Be' (Sep. 6, 2012);

--'U.S. RMBS Loan Loss Model Criteria' (Aug. 10, 2012);

--'U.S. RMBS Surveillance Criteria' (Aug. 10, 2012);

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Structured Finance Recovery Estimates for Distressed Securities' (Nov. 18, 2011);

--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012);

--'Criteria for Interest Rate Stresses in Structured Finance Transactions' (March 20, 2012);

--'Criteria for Rating Caps in Global Structured Finance Transactions' (Aug. 2, 2012).

Applicable Criteria and Related Research:

Criteria for Rating Caps in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684737

Criteria for Interest Rate Stresses in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=673560

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

Structured Finance Recovery Estimates for Distressed Securities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656557

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

U.S. Prime Pre-2005 RMBS: Not What It Used to Be (Adverse Selection Increasing Negative Rating Pressure)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=687698

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Contacts

Fitch Ratings
Primary Performance Analyst:
Sean Nelson, +1-212-908-0207
Fitch Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Grant Bailey, +1-212-908-0554
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Performance Analyst:
Sean Nelson, +1-212-908-0207
Fitch Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Grant Bailey, +1-212-908-0554
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com