Fitch Affirms 7 & Downgrades 3 Classes from 2 UBS MABS Securitizations

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on the Mortgage Asset Securitization Transactions (MASTR) Asset Back Securities Trust (MABS) mortgage pass-through certificates listed below:

Series 2002-OPT1

--Class M-2 affirmed at 'AAA' ;

--Class M-3 affirmed at 'AA';

--Class M-4 affirmed at 'A+';

--Class M-5 affirmed at 'BBB';

--Class M-6 downgraded to 'CCC/DR3' from 'BB-'.

Series 2004-WMC1

--Class M-1 affirmed at 'AA';

--Class M-2 affirmed at 'A';

--Class M-3 affirmed at 'A-';

--Class M-4 downgraded to 'BB' from 'BBB+';

--Class M-5 downgraded to 'B' from 'BBB'.

The affirmations, affecting approximately $94.2 million of the outstanding certificates, are taken as a result of a stable relationship between credit enhancement (CE) and expected loss.

The downgrades, affecting approximately $8.7 million, are the result of deterioration in the relationship between CE and expected losses. Series 2002-OPT1 has serious delinquencies (loans delinquent more than 60 days, inclusive of loans in foreclosure, bankruptcy, and real estate owned (REO)) of 25.10% and current cumulative loss of 1.29%, while the affected M-6 bond has 2.78% of CE. Series 2004-WMC1 has serious delinquencies of 14.89% and current cumulative loss of 1.16%, while the affected M-4 and M-5 bonds have 8% and 5.37% of CE, respectively. In each of the transactions, losses have exceeded excess spread for five of the last six months. As a result, the overcollateralization (OC) is below its target level.

The collateral of the above transactions primarily consists of conforming and non-conforming, fixed-rate and adjustable-rate subprime mortgage loans secured by first and second liens on residential properties. The mortgages underlying series 2002-OPT1 were originated or acquired by Option One Mortgage Corp. and are serviced by Option One Mortgage Corp. (rated 'RPS2+' and on Rating Watch Negative by Fitch). The mortgages underlying series 2004-WMC1 were originated or acquired by WMC, a mortgage banking company incorporated in the state of California and are serviced by HomEq Servicing Corp. (rated 'RPS1' by Fitch).

The pool factors (i.e., current mortgage loans outstanding as a percentage of the initial pool) for series 2002-OPT1 and 2004-WMC1 are approximately 6% and 9%, respectively, and the transactions are seasoned 59 months and 43 months, respectively. Further information regarding current delinquency, loss and CE statistics is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's Distressed Recovery (DR) ratings are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money..

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.