Fitch Affirms 1 & Downgrades 2 Classes of SASCO ARC 2001-BC5

Business Wire, Dec 29, 2005

NEW YORK -- Fitch Ratings has taken rating actions on the following Structured Asset Security Corp. (SASCO) Amortizing Residential Collateral Trust Issue:

Series ARC 2001-BC5

-- Class A affirmed at 'AAA'

-- Class M-1 downgraded to 'AA-' from 'AA';

-- Class M-2 downgraded to 'BBB ' from 'A'.

The mortgage loans initially consisted of approximately 16.03% fixed-rate and 83.97% adjustable-rate, fully amortizing and balloon, first and second lien conventional residential mortgage loans, which do not exceed the Freddie Mac maximum original principal balance limitation. The loans were extended to sub-prime borrowers and are secured by first and second liens, primarily on one- to four-family residential properties. Substantially, all of the mortgage loans were acquired by either Lehman Capital, a Division of Lehman Brothers Holdings Inc., or Lehman Brothers Bank, FSB (and thereafter, assigned by the bank to Lehman Capital) from Finance America, LLC or First Franklin Financial Corporation. The loans are master serviced by Wells Fargo Bank, N.A. (rated 'RMS1' by Fitch) and serviced by Countrywide Home Loans, Inc. and Ocwen Federal Bank (rated 'RPS1' and 'RPS2', respectively, by Fitch).

As of the December 2005 distribution date, the transaction is seasoned 52 months, and the pool factor (current mortgage loan principal outstanding as a percentage of the initial pool) is approximately 7%. The cumulative loss to date incurred on the pool as a percentage of the initial balance is 1.82%.

The affirmation reflects a stable relationship between credit enhancement (CE) and future loss expectations and affects approximately $32.33 million of outstanding certificates.

The downgrades reflect deterioration in the relationship between CE and expected losses due to higher-than-expected serious delinquency and an overcollateralization (OC) amount below its target amount. Approximately 41% of the pool is more than 60 days delinquent (including loans in bankruptcy, foreclosure and real estate owned). The OC amount is currently $1,320,318, below its target amount of $1,448,111. In five of the past 12 months, the excess spread has not been sufficient to cover the monthly losses incurred.

Fitch will continue to closely monitor these transactions. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site 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.