Fitch Affirms 13 & Downgrades 7 RMBS Classes from 2 SAIL Securitizations

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken rating actions on the following Structured Asset Investment Loan Trust (SAIL) residential mortgage-backed certificates, as follows:

Series 2003-BC8

--Classes 2A, 3A2, 3A3, AIO affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M4 downgraded to 'BBB' from 'BBB+';

--Class M5 downgraded to 'BB' from 'BBB';

--Class B downgraded to 'BB-' from 'BBB-'.

Series 2003-BC12

--Classes 1A, 2A, 3A affirmed at 'AAA';

--Class M1 affirmed at 'AA';

--Class M2 affirmed at 'A';

--Class M3 affirmed at 'A-';

--Class M4 downgraded to 'BBB' from 'BBB+';

--Class M5 downgraded to 'BB+' from 'BBB';

--Class M6 downgraded to 'BB+' from 'BBB-';

--Class B downgraded to 'B' from 'BB'.

The affirmations reflect adequate relationships of credit enhancement (CE) to future loss expectations and affect approximately $297.11 million of outstanding certificates. CE is in the form of subordination, overcollateralization (OC) and excess spread. The negative rating actions, affecting approximately $28.72 million of outstanding certificates, reflect deterioration in the relationship between CE and expected losses due to higher than expected delinquencies and losses as well as OC below its target amount.

Approximately 20.8% of the pool for series 2003-BC8 is more than 60 days delinquent (including loans in Bankruptcy, Foreclosure and Real Estate Owned). The OC amount is currently $1,827,672 below its target amount of $5,417,847. In five of the past six months, the excess spread has not been sufficient to cover the monthly losses incurred. Monthly losses have averaged $395,332 for the past 3 months. Cumulative losses as a percent of the original collateral balance are 0.92%.

Approximately 17.6% of the pool for series 2003-BC12 is more than 60 days delinquent (including loans in Bankruptcy, Foreclosure and Real Estate Owned). The OC amount is currently $2,125,396 below its target amount of $5,337,788. For the past six months, the excess spread has not been sufficient to cover the monthly losses incurred. Monthly losses have averaged $574,932 for the three months. Cumulative losses as a percent of the original collateral balance are 0.96%.

Series 2003-BC8 is seasoned 40 months and the pool factor (current mortgage loan principal outstanding as a percentage of the initial pool) is 16%. Series 2003-BC12 is seasoned 37 months and the pool factor is 17%.

The mortgage pools consist of fixed- and adjustable-rate, fully-amortizing and balloon, first and second lien conventional residential mortgage loans having an original term of no more than 30 years. The mortgage loans were originated or acquired by various originators or their correspondents in accordance with such originator's respective underwriting standards and guidelines and are master serviced by Aurora Loan Services, Inc., which is rated 'RMS1-' by Fitch.

Fitch will continue to closely monitor these transactions. Further information regarding current delinquency, loss and credit enhancement statistics is available on the Fitch Ratings website at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.