T R O U B L E D   C O M P A N Y   R E P O R T E R

            Tuesday, April 29, 2008, Vol. 12, No. 101

                             Headlines

ABFC TRUST: Realized Losses Cue S&P's Rating Cuts on Certificates
ABSC CERTIFICATES: S&P Downgrades Cert. Ratings on Realized Losses
ACA CAPITAL: Counterparties Extend Forbearance Deal Until May 30
ACAS CRE: 12 Classes Obtain Fitch's Rating Downgrades to Low-B
ACE SECURITIES: Fitch Takes Various Rating Actions on Certificates

ACTIGA CORP: Grobstein Horwath Raises Substantial Doubt
ACTIVANT SOLUTIONS: Earns $593,000 in First Quarter Ended Dec. 31
AEGIS MORTGAGE: Fitch Cuts Ratings on Notes Totaling $235.9MM
AMERICAN HOME: Committee Seeks to Retain Special Conflicts Counsel
AMERICAN HOME: Parties Respond to Motion Concerning 392 Claims

AMERICAN HOME: Court Disallows, Expunges 80 Claims
AMERICAN HOME: Court Approves Final Stipulation on Cash Collateral
AMERICAN HOME: Judge Refuses to Lift Stay for BofA to Sell Loans
AMPEX CORPORATION: U.S. Trustee Forms Five-Member Committee
AMPEX CORPORATION: Receives Delisting Notice from Nasdaq

ANSONIA CDO: 15 Cert. Classes Acquire Fitch's Rating Downgrades
ASARCO LLC: Court OKs $5 Mil. Stand-Alone Financing from JPMorgan
ASARCO LLC: Court Approves Environmental Claim Settlement Pacts
ASARCO LLC: Court Okays Michael Warner as Examiner
ASARCO LLC: Asks Court to Approve $1.27MM Settlement with El Paso  

ATLANTIC EXPRESS: Dec. 31 Balance Sheet Upside-Down by $42.8 MM
AVISTAR COMMS: Faces Nasdaq Delisting Due to Low Share Bid Price
BALDWIN 2006-IV: Moody's Reviews 'Ba1' Rating on $51 Mil. Notes
BALDWIN 2006-V: Moody's Reviews 'Ba2' Rating on $7 Mil. Notes
BALDWIN 2006-VI: Moody's Reviews 'Ba2' Rating on $15 Mil. Notes

BALDWIN 2006-VII: Moody's Reviews 'Ba1' Rating on Class A-2 Notes
BLOCKBUSTER INC: Circuit Stockholder HBK Supports Merger Talks
BLOCK COMMS: S&P Upgrades Corporate Credit Rating to 'BB-' From B+
BLOUNT INT'L: December 31 Balance Sheet Upside-Down by $54 Million
BOB WILSON: Voluntary Chapter 11 Case Summary

BRAHMANI RIVER: Fitch Attaches 'BB+' Long-term Issuer Rating
BSML INC: Stonefield Josephson Expresses Going Concern Doubt
CANADIAN TRUSTS: Noteholders Approve ABCP Restructuring Plan
CANEUM INC: LevitZacks Expresses Going Concern Doubt
CAPRI CONDOMINIUMS: Resolves Bank Claims; Has New Owner

CASH SYSTEMS: Auditor Expresses Going Concern Doubt
CATHOLIC CHURCH: Davenport Submits Plan Balloting Results
CD 2005-CD1 COMMERCIAL: Moody's Holds Low-B Ratings on Six Classes
CELESTICA INC: S&P Changes Outlook to Stable; Holds 'B+' Ratings
CENTRAL GARDEN: Posts $290MM Net Loss in Quarter Ended Dec. 29

CHARMING SHOPPES: Urges Shareholders to Re-Elect Three Directors
CHARMING SHOPPES: Explores Strategic Options for Non-Core Assets
CHC HELICOPTER: Shareholders to Vote on First Reserve Merger Today
CITIFINANCIAL MORTGAGE: Fitch Cuts Rating on $7.7 Mil. Notes to BB
CITIGROUP MORTGAGE: Fitch Cuts Ratings on Six Classes to Low-Bs

CSFB MORTGAGE: Moody's Confirms Junk Ratings on Four Classes
CRI HOTEL: Grant Thornton Raises Substantial Doubt
CV THERAPEUTICS: March 31 Balance Sheet Upside-Down by $208MM
DELPHI CORP: To Seek $4.1 Bil. Loan Refinancing, Adjusts Forecasts
DELPHI CORP: Wants to Obtain $650 Million Credit from GM

DELPHI CORP: Ch. 11 Exit to be Delayed for Months, GM Chief Says
DUKE FUNDING: Eight Classes of Notes Get Moody's Rating Downgrades
EDUCATION RESOURCES: Organizational Meeting Set for Tomorrow
FIELDSTONE MORTGAGE: S&P Downgrades Ratings on Certificate Classes
FORD CREDIT: Moody's Puts 'Ba1' Rating on $31.5 Mil. Class D Notes

FORD MOTOR: Shareholder Tracinda Offers to Buy 20MM Ford Stake
FORD MOTOR: Inks Master Economics Offer Agreement with CAW
FORT DENISON: Declining Credit Quality Cues Moody's Rating Cuts
FORTUNOFF: Morrison & Foerster is Committee's Substitute Counsel
FORTUNOFF: Names Christopher Sim as Chief Financial Officer

FRONTIER AIRLINES: Trustee Appoints Seven-Member Creditors Panel
GENERAL MOTORS: Former Unit Delphi Wants $650 Million GM Credit
GENERAL MOTORS: Moody's Gives Negative Outlook; Keeps 'B3' Rating
GENERAL MOTORS: Chief Says Delphi's Ch. 11 Exit to be Delayed
GOLDSPRING INC: March 31 Balance Sheet Upside-Down by $15,640,737

GREENVILLE CASUALTY: A.M. Best Keeps 'bb+' Issuer Credit Rating
HC INNOVATIONS: Carlin Charron Raises Substantial Doubt
HOOP HOLDINGS: Wants to Engage Gibson Dunn as Special Counsel
HURLEY MEDICAL: Fitch Keeps 'BB+' Rating on $67.1MM Revenue Bonds
IMPERIAL INDUSTRIES: Grant Thornton Raises Substantial Doubt

INGRAM MICRO: Unveils Global Restructuring Plan, 1st Qtr. Results
INNOVATIVE CARD: Singer Lewak Raises Substantial Doubt
IPSWICH STREET: Poor Credit Quality Cues Moody's Rating Downgrades
JER CRE: Fitch Cuts Ratings of 13 Classes of Notes to Low B
JP MORGAN MORTGAGE: Fitch Cuts Ratings of Several Certificates

KIMBALL HILL: Secured Lender Agrees to Cash Collateral Use
KIMBALL HILL: Wants Court to Approve $51 Million Intercompany Loan
KIMBALL HILL: Wants to Hire Kurtzman Carson as Claims Agent
KIMBALL HILL: S&P Ratings Tumble to 'D' on Chapter 11 Filing
LB COMMERCIAL: Losses Cue Moody's Rating Cuts on Three Classes

LB-UBS COMMERCIAL: Anticipated Losses Prompt S&P's Rating Cuts
LID LTD: Court Approves Bidding Procedure for Sale of Assets
LIGHTSPACE CORP: Miller Wachman Raises Substantial Doubt
LNR CDO: Fitch Downgrades Ratings on 10 Classes of Notes to Low-Bs
LNR CDO: Fitch Cuts Ratings on $55.3 Mil. Class J Notes to 'B-'

MAC-GRAY CORP: Acquires Automatic Laundry Company for $116 Mil.
MAC-GRAY CORP: Moody's Cuts Ratings on 7.625% Senior Notes to 'B3'
MACROVISION SOLUTIONS: Moody's Cuts Rating on Proposed Loan to Ba2
MASTR TRUSTS: High Delinquencies Cue Moody's 50 Rating Downgrades
MEDICOR LTD: Can Sell All Assets to Global Consolidated for $51MM

MERGE HEALTHCARE: KPMG LLP Raises Substantial Doubt
M FABRIKANT: Files Modified Chapter 11 Plan; Lenders Balk Again
MICRON TECHNOLOGY: Moody's Keeps 'Ba3' Rating; Gives Neg. Outlook
MICRON TECHNOLOGY: S&P Keeps 'BB-' Corp. Rating on Ample Liquidity
MIDDLETON DOLL: Losses and Cash Outflows Prompt Going Concern

MORGAN STANLEY MORTGAGE: Fitch Downgrades Ratings on $812MM Certs.
MORGAN STANLEY DEAN: Moody's Confirms Low-B Ratings on Six Classes
NEW CENTURY: Gets Creditors' Support on Chapter 11 Plan
NEW CENTURY: Seeks to Modify Amended Joint Chapter 11 Plan
NEW CENTURY HOME: Fitch Cuts Ratings on $267.9 Mil. Certs.

NEW YORK RACING: Judge Peck Confirms Modified Amended Ch.11 Plan
NEXTMEDIA OPERATING: S&P Holds Credit Watch Listing on 'B-' Rating
NORSAT INT'L: Losses, Deficit Cue Management's Going Concern
NORTH STREET: Moody's Reviews 'Ba2' Rating on $155 Mil. Notes
NPS PHARMA: December 31 Balance Sheet Upside-Down by $188 Million

PACER HEALTH: Sells Acute Care Hospital to Saint Joseph's Health
PERMA-FIX ENVIRONMENTAL: BDO Seidman Raises Substantial Doubt
PHOENIX FOOTWEAR: Grant Thornton Expresses Going Concern Doubt
PNM RESOURCES: Moody's Lowers Senior Unsecured Rating to 'Ba2'
POSITRON CORP: Frank Sassetti Expresses Going Concern Doubt

POWERMATE HOLDING: Committee Selects Sonnenschein as Counsel
PROPEX INC: Wants Court to Extend Exclusive Plan-Filing to Oct. 18
PROPEX INC: Wants Court to Extend Lease Decision Period to Aug. 15
PROVIDENTIAL HOLDINGS: Earns $227,950 in 2nd Quarter Ended Dec. 31
REDENVELOPE INC: Gets Tentative OK on Sale Bidding Procedures

REDENVELOPE INC: Gets Initial OK to Use Granite's $4.5MM Facility
SAIL TRUSTS: Reduced Credit Enhancement Prompts S&P's Rating Cuts
SHARPER IMAGE: Allowed to Employ Weil, Gotshal as Attorney
SHARPER IMAGE: Committee Wants to Retain Cooley as Lead Counsel
SHARPER IMAGE: Committee Wants to Retain Loughlin as Advisor

SHARPER IMAGE: Committee Wants to Retain Whiteford as Counsel
SHARPER IMAGE: SCSF Disposes of 150,000 Shares
SIRVA INC: Files Motion to Modify Plan Without Resolicitation
SOUNDVIEW HOME: Fitch Cuts Rating on $1.5 Mil. Bonds to 'BB+'

SUNAMERICA MORTGAGE: Moody's Maintains 'Ba1' Rating on Class B-5
SUNCREST LLC: Wants to Hire Vinson & Elkins as Counsel
SUNCREST LLC: Discloses Properties and Various Claim Holders
SUPERIOR ESSEX: S&P Upgrades Corporate Credit Rating to 'BB'
TERWIN MORTGAGE: Fitch Holds Low-B Ratings on Two 2003-6HE Certs.

THERMADYNE HOLDINGS: Earns $4 Million in Quarter Ended December 31
TIAA REAL: S&P Confirms 'BB' Rating on $12 Mil. Class E Notes
TRANSMERIDIAN EXPLORATION: UHY LLP Raises Substantial Doubt
TRIBUNE CO: Gets $580 Million Counter Bid from Mortimer Zuckerman
TULLY'S COFFEE: Dec. 30 Balance Sheet Upside-Down by $10.3 Million

TYSON FOODS: Posts $5 Million Net Loss in Quarter ended March 29
UBS MORTGAGE: Fitch Takes Rating Actions on Various Certificates
US AIRWAYS: Sets Executive Incentive Plan Targets for 2008
US AIRWAYS: Reaches Tentative Three-Year Agreement with IAM
US AIRWAYS: Trafelet and Wellington Disclose Stake Ownerships

US AIRWAYS: Pilots Opt for USAPA as Bargaining Agents
VERSO TECHNOLOGIES: Files Chapter 11 Petition in Georgia
VERSO TECHNOLOGIES: Case Summary & 30 Largest Unsecured Creditors
WACHOVIA BANK: Fitch Affirms Low-B Rating on Six Classes of Certs.
WACHOVIA BANK: Fitch Holds 'BB+' Rating on Two Classes of Certs.

WINDSTREAM CORP: Strong Cash Flows Cue Fitch to Hold 'BB+' Rating
WORLD HEART: Obtains Non-Compliance Notice from Nasdaq Stock
YRC WORLDWIDE: Refinancing Risks Cue S&P to Confirm 'BB' Rating

* Fitch SMARTView Puts 21 U.S. CMBS Deals 'Under Analysis'
* S&P Slashes 40 Tranches' Ratings From Nine Cash Flows and CDOs
* S&P Downgrades Ratings on 26 Classes From Eight RMBS Deals

* Large Companies with Insolvent Balance Sheets

                             *********

ABFC TRUST: Realized Losses Cue S&P's Rating Cuts on Certificates
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on 79
classes of asset-backed certificates issued by 17 ABFC Trust,
Asset Backed Securities Corp., Fieldstone Mortgage Investment
Trust, Meritage Mortgage Loan Trust, and Structured Asset
Investment Loan Trust series.  At the same time, S&P removed its
ratings on 20 of these classes from CreditWatch negative.

Concurrently, S&P placed its ratings on 25 classes on CreditWatch
with negative implications, and affirmed its ratings on the
remaining 80 classes from these transactions.  These classes in
the affected transactions are secured primarily by U.S. subprime
mortgage loan collateral.
     
The downgrades affecting the transactions from the 2005 vintage
reflect reduced credit enhancement due to monthly realized losses,
as well as a high amount of loans that are considered severely
delinquent (90-plus days, foreclosures, and REOs).  As of the
March 2008 remittance period, cumulative losses for the 2005
vintage transactions, as a percentage of the original pool
balances, ranged from 1.11% (ABFC series 2005-HE1) to 3.60%
(Meritage series 2005-2).  

The increasing amount of loans that are severely delinquent
suggests that losses will continue to exceed excess interest and
further compromise credit support.  Severe delinquencies, as a
percentage of the current pool balances, ranged from 21.14% (Asset
Backed Securities Corp. series 2005-HE1)
to 41.82% (Meritage series 2005-2).  The increase in the dollar
amount of severe delinquencies since the April 2007 remittance
ranged from 27.17% (ABFC series 2005-HE1) to 156.65% (ABFC series
2005-WMC1).  Class B-1 from ABFC series 2005-WMC1 experienced a
principal write-down of $52,243, prompting S&P to lower the rating
on the security to 'D'.
     
S&P removed its ratings on 20 of the downgraded classes from
CreditWatch negative.  According to Standard & Poor's surveillance
practices, ratings lower than 'B-' on classes of certificates or
notes from RMBS transactions are not eligible to be on CreditWatch
negative.  S&P lowered its rating on class M9 from Asset Backed
Securities Corp.'s series 2005-HE1 to 'B' and removed it from
CreditWatch negative because S&P does not anticipate any rating
further actions on this class in the near future.
    
S&P placed its ratings on 25 classes on CreditWatch negative.
While S&P believes the amount of credit enhancement for these
classes may be insufficient to cover projected losses, S&P will
not initiate additional rating actions until it completes
additional analysis.  S&P will further evaluate and compare the
date of projected defaults with the projected payoff dates, as
well as the relationships between projected credit support and
projected losses throughout the remaining life of each
certificate.
     
All of the lowered ratings affecting the transactions from the
2006 vintage reflect principal write-downs or the complete erosion
of credit support.  Given these factors, S&P lowered its ratings
on these classes to 'D'.  As of the March 2008 remittance period,
credit support for class M-11 from Fieldstone Mortgage Investment
Trust's series 2006-1 had been depleted.  As of the March
remittance, class M8 from Structured Asset Investment Loan Trust's
series 2006-2 had experienced principal write-downs totaling
$942,299; class B1 from Structured Asset Investment Loan Trust's
series 2006-BNC2 had experienced principal write-downs totaling
$3,773,306; and class M10 from Asset Backed Securities Corp.'s
series NC 2006-HE4 had experienced principal write-downs totaling
$5,307,122.
     
The 86 affirmations reflect sufficient credit enhancement
available to support the ratings at their current levels despite
the negative trends in the underlying collateral for these deals.
     
Subordination, overcollateralization, and excess spread provide
credit support for all of the affected series.  The collateral for
these transactions primarily consists of subprime, adjustable- and
fixed-rate mortgage loans secured by first liens on one- to four-
family residential properties.

                          Ratings Lowered

                             ABFC Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-HE1            M-7        04542BKY7     B              BBB+
2005-HE1            M-8        04542BKZ4     CCC            BBB
2005-HE1            M-9        04542BLA8     CCC            BBB-
2005-HE1            B-3        04542BLD2     CC             CCC
2005-WMC1           M-6        04542BPJ5     B              A+
2005-WMC1           M-7        04542BPK2     CCC            A+
2005-WMC1           M-8        04542BPL0     CCC            A
2005-WMC1           M-9        04542BPM8     CCC            BBB
2005-WMC1           M-10       04542BPN6     CC             B
2005-WMC1           M-11       04542BPP1     CC             B
2005-WMC1           M-12       04542BPQ9     CC             CCC
2005-WMC1           B-1        04542BPR7     D              CCC

                  Asset Backed Securities Corp.

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
NC 2006-HE4          M10        04544GAS8     D              CC

        Asset Backed Securities Corp. Home Equity Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-HE2            M5         04541GQF2     BB             BBB+
2005-HE2            M6         04541GQG0     B              BBB
2005-HE3            M8         04541GRB0     B              BBB
2005-HE3            M11        04541GRE4     CC             CCC
2005-HE4            M9         04541GRT1     B              BBB-
2005-HE4            M10        04541GRX2     CCC            BB+
2005-HE5            M7         04541GSP8     BBB-           A-
2005-HE5            M8         04541GSQ6     B              BBB+
2005-HE5            M12        04541GSU7     CC             CCC
2005-HE6            M5         04541GTP7     BBB-           A
2005-HE6            M6         04541GTQ5     B              A-
2005-HE6            M7         04541GTR3     CCC            BBB+
2005-HE6            M9         04541GTT9     CCC            BB
2005-HE6            M10        04541GSY9     CCC            B
2005-HE6            M11        04541GSZ6     CC             CCC

                 Fieldstone Mortgage Investment Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2006-1              M-11       31659TFL4     D              CCC

                    Meritage Mortgage Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-2              M-6        59001FCW9     B              A+
2005-2              M-11       59001FDB4     CC             CCC

               Structured Asset Investment Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-10             M4         86358EZB5     CCC            A+
2005-10             M5         86358EZC3     CCC            A
2005-10             M6         86358EZD1     CC             BB
2005-10             B1         86358EZH2     CC             CCC
2005-10             B2         86358EZK5     CC             CCC
2005-10             M9         86358EZG4     CC             CCC
2005-8              M4         86358EXT8     CCC            BBB+
2005-8              M5         86358EXU5     CCC            BBB
2005-8              M6         86358EXV3     CCC            BB
2005-8              M7         86358EXW1     CC             B
2005-8              M8         86358EXX9     CC             CCC
2005-8              M9         86358EXY7     CC             CCC
2005-9              M4         86358EYJ9     CCC            A+
2005-9              M5         86358EYK6     CCC            BBB+
2005-9              M6         86358EYL4     CCC            BB
2005-9              M7         86358EYM2     CCC            BB
2005-9              M8         86358EYN0     CC             B
2005-9              B1         86358EYQ3     CC             CCC
2005-9              M9         86358EYP5     CC             CCC
2005-HE1            M4         86358EUY0     BB             A+
2005-HE1            M5         86358EUZ7     B-             A
2005-HE1            M6         86358EVA1     CCC            BBB
2005-HE1            M7         86358EVB9     CC             B
2005-HE1            M8         86358EVC7     CC             B
2005-HE1            B1         86358EVE3     CC             CCC
2005-HE1            M9         86358EVD5     CC             CCC
2006-2              M8         86358EF76     D              CC
2006-BNC2           B1         86358GAQ4     D              CC

              Ratings Placed on CreditWatch Negative

                             ABFC Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-WMC1           M-4        04542BPG1     AA/Watch Neg   AA
2005-WMC1           M-5        04542BPH9     AA-/Watch Neg  AA-

                   Meritage Mortgage Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-2              M-5        59001FCV1     AA-/Watch Neg  AA-

               Structured Asset Investment Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-10             A1         86358EYT7     AAA/Watch Neg  AAA
2005-10             A2         86358EYU4     AAA/Watch Neg  AAA
2005-10             A4         86358EYW0     AAA/Watch Neg  AAA
2005-10             A-5        86358EYX8     AAA/Watch Neg  AAA
2005-10             A6         86358EZJ8     AAA/Watch Neg  AAA
2005-10             M1         86358EYY6     AA+/Watch Neg  AA+
2005-10             M2         86358EYZ3     AA/Watch Neg   AA
2005-10             M3         86358EZA7     AA-/Watch Neg  AA-
2005-8              A3         86358EXN1     AAA/Watch Neg  AAA
2005-8              A4         86358EXP6     AAA/Watch Neg  AAA
2005-8              M1         86358EXQ4     AA+/Watch Neg  AA+
2005-8              M2         86358EXR2     AA/Watch Neg   AA
2005-8              M3         86358EXS0     AA-/Watch Neg  AA-
2005-9              A1         86358EYA8     AAA/Watch Neg  AAA
2005-9              A2         86358EYB6     AAA/Watch Neg  AAA
2005-9              A3         86358EYC4     AAA/Watch Neg  AAA
2005-9              A5         86358EYE0     AAA/Watch Neg  AAA
2005-9              A6         86358EYS9     AAA/Watch Neg  AAA
2005-9              M1         86358EYF7     AA+/Watch Neg  AA+
2005-9              M2         86358EYG5     AA/Watch Neg   AA
2005-9              M3         86358EYH3     AA-/Watch Neg  AA-
2005-HE1            M3         86358EUX2     AA-/Watch Neg  AA-

       Ratings Lowered and Removed From CreditWatch Negative

                            ABFC Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-HE1            B-1            CCC         BB+/Watch Neg
    2005-HE1            B-2            CC          BB/Watch Neg

     Asset Backed Securities Corporation Home Equity Loan Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-HE1            M9             B           BBB-/Watch Neg
    2005-HE1            M10            CCC         BB+/Watch Neg
    2005-HE2            M7             CCC         BBB-/Watch Neg
    2005-HE2            M8             CCC         BB+/Watch Neg
    2005-HE3            M9             CCC         BBB-/Watch Neg
    2005-HE3            M10            CCC         BB+/Watch Neg
    2005-HE4            M11            CCC         BB/Watch Neg
    2005-HE4            M12            CC          BB/Watch Neg
    2005-HE5            M9             CCC         BBB/Watch Neg
    2005-HE5            M10            CCC         BBB-/Watch Neg
    2005-HE5            M11            CC          BB/Watch Neg
    2005-HE6            M8             CCC         BBB/Watch Neg

                   Meritage Mortgage Loan Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-2              M-7            CCC         A/Watch Neg
    2005-2              M-8            CCC         BBB+/Watch Neg
    2005-2              M-9            CCC         BB/Watch Neg
    2005-2              M-10           CC          B/Watch Neg

               Structured Asset Investment Loan Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-10             M7             CC          BB/Watch Neg
    2005-10             M8             CC          B/Watch Neg

                        Ratings Affirmed

                            ABFC Trust

          Transaction         Class      CUSIP         Rating
          -----------         -----      -----         ------
          2005-HE1            M-1        04542BKS0     AA+
          2005-HE1            M-2        04542BKT8     AA
          2005-HE1            M-3        04542BKU5     AA-
          2005-HE1            M-4        04542BKV3     A+
          2005-HE1            M-5        04542BKW1     A
          2005-HE1            M-6        04542BKX9     A-
          2005-WMC1           A-1        04542BNX6     AAA
          2005-WMC1           A-2C       04542BPA4     AAA
          2005-WMC1           A-2D       04542BPB2     AAA
          2005-WMC1           A-2MZ      04542BPC0     AAA
          2005-WMC1           M-1        04542BPD8     AA+
          2005-WMC1           M-2        04542BPE6     AA+
          2005-WMC1           M-3        04542BPF3     AA

     Asset Backed Securities Corporation Home Equity Loan Trust

          Transaction         Class      CUSIP         Rating
          -----------         -----      -----         ------
          2005-HE1            M1         04541GPH9     AA+
          2005-HE1            M2         04541GPJ5     AA
          2005-HE1            M3         04541GPK2     AA-
          2005-HE1            M4         04541GPL0     A+
          2005-HE1            M5         04541GPM8     A
          2005-HE1            M6         04541GPN6     A-
          2005-HE1            M7         04541GPP1     BBB+
          2005-HE1            M8         04541GPQ9     BBB
          2005-HE1            M11        04541GPT3     CCC
          2005-HE2            M1         04541GQB1     AA
          2005-HE2            M2         04541GQC9     AA-
          2005-HE2            M3         04541GQD7     A
          2005-HE2            M4         04541GQE5     A-
          2005-HE3            A1         04541GQN5     AAA
          2005-HE3            A2B        04541GQQ8     AAA
          2005-HE3            A5         04541GQT2     AAA
          2005-HE3            M1         04541GQU9     AA+
          2005-HE3            M2         04541GQV7     AA
          2005-HE3            M3         04541GQW5     AA-
          2005-HE3            M4         04541GQX3     A+
          2005-HE3            M5         04541GQY1     A
          2005-HE3            M6         04541GQZ8     A-
          2005-HE3            M7         04541GRA2     BBB+
          2005-HE4            A1         04541GRJ3     AAA
          2005-HE4            A2         04541GRU8     AAA
          2005-HE4            A2B        04541GRW4     AAA
          2005-HE4            M1         04541GRK0     AA+
          2005-HE4            M2         04541GRL8     AA
          2005-HE4            M3         04541GRM6     AA-
          2005-HE4            M4         04541GRN4     A+
          2005-HE4            M5         04541GRP9     A
          2005-HE4            M6         04541GRQ7     A-
          2005-HE4            M7         04541GRR5     BBB+
          2005-HE4            M8         04541GRS3     BBB
          2005-HE5            A1         04541GSD5     AAA
          2005-HE5            A1A        04541GSE3     AAA
          2005-HE5            A2         04541GSF0     AAA
          2005-HE5            A2A        04541GSG8     AAA
          2005-HE5            M1         04541GSH6     AA+
          2005-HE5            M2         04541GSJ2     AA
          2005-HE5            M3         04541GSK9     AA
          2005-HE5            M4         04541GSL7     AA-
          2005-HE5            M5         04541GSM5     A+
          2005-HE5            M6         04541GSN3     A
          2005-HE6            A1         04541GTD4     AAA
          2005-HE6            A1A        04541GTE2     AAA
          2005-HE6            A2B        04541GTG7     AAA
          2005-HE6            A2C        04541GTH5     AAA
          2005-HE6            A2D        04541GTJ1     AAA
          2005-HE6            M1         04541GTK8     AA+
          2005-HE6            M2         04541GTL6     AA
          2005-HE6            M3         04541GTM4     AA-
          2005-HE6            M4         04541GTN2     A+

                   Meritage Mortgage Loan Trust

          Transaction         Class      CUSIP         Rating
          -----------         -----      -----         ------
          2005-2              I-A1       59001FCL3     AAA
          2005-2              II-A2      59001FCN9     AAA
          2005-2              II-A3      59001FCP4     AAA
          2005-2              M-1        59001FCR0     AA+
          2005-2              M-2        59001FCS8     AA+
          2005-2              M-3        59001FCT6     AA
          2005-2              M-4        59001FCU3     AA

               Structured Asset Investment Loan Trust

          Transaction         Class      CUSIP         Rating
          -----------         -----      -----         ------
          2005-HE1            A2         86358EUN4     AAA
          2005-HE1            A5         86358EUR5     AAA
          2005-HE1            A6         86358EUS3     AAA
          2005-HE1            A7         86358EUT1     AAA
          2005-HE1            A8         86358EUU8     AAA
          2005-HE1            M1         86358EUV6     AA+
          2005-HE1            M2         86358EUW4     AA


ABSC CERTIFICATES: S&P Downgrades Cert. Ratings on Realized Losses
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on 79
classes of asset-backed certificates issued by 17 Asset Backed
Securities Corp., ABFC Trust, Fieldstone Mortgage Investment
Trust, Meritage Mortgage Loan Trust, and Structured Asset
Investment Loan Trust series.  At the same time, S&P removed its
ratings on 20 of these classes from CreditWatch negative.

Concurrently, S&P placed its ratings on 25 classes on CreditWatch
with negative implications, and affirmed its ratings on the
remaining 80 classes from these transactions.  These classes in
the affected transactions are secured primarily by U.S. subprime
mortgage loan collateral.
     
The downgrades affecting the transactions from the 2005 vintage
reflect reduced credit enhancement due to monthly realized losses,
as well as a high amount of loans that are considered severely
delinquent (90-plus days, foreclosures, and REOs).  As of the
March 2008 remittance period, cumulative losses for the 2005
vintage transactions, as a percentage of the original pool
balances, ranged from 1.11% (ABFC series 2005-HE1) to 3.60%
(Meritage series 2005-2).  

The increasing amount of loans that are severely delinquent
suggests that losses will continue to exceed excess interest and
further compromise credit support.  Severe delinquencies, as a
percentage of the current pool balances, ranged from 21.14% (Asset
Backed Securities Corp. series 2005-HE1)
to 41.82% (Meritage series 2005-2).  The increase in the dollar
amount of severe delinquencies since the April 2007 remittance
ranged from 27.17% (ABFC series 2005-HE1) to 156.65% (ABFC series
2005-WMC1).  Class B-1 from ABFC series 2005-WMC1 experienced a
principal write-down of $52,243, prompting S&P to lower the rating
on the security to 'D'.
     
S&P removed its ratings on 20 of the downgraded classes from
CreditWatch negative.  According to Standard & Poor's surveillance
practices, ratings lower than 'B-' on classes of certificates or
notes from RMBS transactions are not eligible to be on CreditWatch
negative.  S&P lowered its rating on class M9 from Asset Backed
Securities Corp.'s series 2005-HE1 to 'B' and removed it from
CreditWatch negative because S&P does not anticipate any rating
further actions on this class in the near future.
    
S&P placed its ratings on 25 classes on CreditWatch negative.
While S&P believes the amount of credit enhancement for these
classes may be insufficient to cover projected losses, S&P will
not initiate additional rating actions until it completes
additional analysis.  S&P will further evaluate and compare the
date of projected defaults with the projected payoff dates, as
well as the relationships between projected credit support and
projected losses throughout the remaining life of each
certificate.
     
All of the lowered ratings affecting the transactions from the
2006 vintage reflect principal write-downs or the complete erosion
of credit support.  Given these factors, S&P lowered its ratings
on these classes to 'D'.  As of the March 2008 remittance period,
credit support for class M-11 from Fieldstone Mortgage Investment
Trust's series 2006-1 had been depleted.  As of the March
remittance, class M8 from Structured Asset Investment Loan Trust's
series 2006-2 had experienced principal write-downs totaling
$942,299; class B1 from Structured Asset Investment Loan Trust's
series 2006-BNC2 had experienced principal write-downs totaling
$3,773,306; and class M10 from Asset Backed Securities Corp.'s
series NC 2006-HE4 had experienced principal write-downs totaling
$5,307,122.
     
The 86 affirmations reflect sufficient credit enhancement
available to support the ratings at their current levels despite
the negative trends in the underlying collateral for these deals.
     
Subordination, overcollateralization, and excess spread provide
credit support for all of the affected series.  The collateral for
these transactions primarily consists of subprime, adjustable- and
fixed-rate mortgage loans secured by first liens on one- to four-
family residential properties.

                          Ratings Lowered

                             ABFC Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-HE1            M-7        04542BKY7     B              BBB+
2005-HE1            M-8        04542BKZ4     CCC            BBB
2005-HE1            M-9        04542BLA8     CCC            BBB-
2005-HE1            B-3        04542BLD2     CC             CCC
2005-WMC1           M-6        04542BPJ5     B              A+
2005-WMC1           M-7        04542BPK2     CCC            A+
2005-WMC1           M-8        04542BPL0     CCC            A
2005-WMC1           M-9        04542BPM8     CCC            BBB
2005-WMC1           M-10       04542BPN6     CC             B
2005-WMC1           M-11       04542BPP1     CC             B
2005-WMC1           M-12       04542BPQ9     CC             CCC
2005-WMC1           B-1        04542BPR7     D              CCC

                  Asset Backed Securities Corp.

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
NC 2006-HE4          M10        04544GAS8     D              CC

        Asset Backed Securities Corp. Home Equity Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-HE2            M5         04541GQF2     BB             BBB+
2005-HE2            M6         04541GQG0     B              BBB
2005-HE3            M8         04541GRB0     B              BBB
2005-HE3            M11        04541GRE4     CC             CCC
2005-HE4            M9         04541GRT1     B              BBB-
2005-HE4            M10        04541GRX2     CCC            BB+
2005-HE5            M7         04541GSP8     BBB-           A-
2005-HE5            M8         04541GSQ6     B              BBB+
2005-HE5            M12        04541GSU7     CC             CCC
2005-HE6            M5         04541GTP7     BBB-           A
2005-HE6            M6         04541GTQ5     B              A-
2005-HE6            M7         04541GTR3     CCC            BBB+
2005-HE6            M9         04541GTT9     CCC            BB
2005-HE6            M10        04541GSY9     CCC            B
2005-HE6            M11        04541GSZ6     CC             CCC

                 Fieldstone Mortgage Investment Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2006-1              M-11       31659TFL4     D              CCC

                    Meritage Mortgage Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-2              M-6        59001FCW9     B              A+
2005-2              M-11       59001FDB4     CC             CCC

               Structured Asset Investment Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-10             M4         86358EZB5     CCC            A+
2005-10             M5         86358EZC3     CCC            A
2005-10             M6         86358EZD1     CC             BB
2005-10             B1         86358EZH2     CC             CCC
2005-10             B2         86358EZK5     CC             CCC
2005-10             M9         86358EZG4     CC             CCC
2005-8              M4         86358EXT8     CCC            BBB+
2005-8              M5         86358EXU5     CCC            BBB
2005-8              M6         86358EXV3     CCC            BB
2005-8              M7         86358EXW1     CC             B
2005-8              M8         86358EXX9     CC             CCC
2005-8              M9         86358EXY7     CC             CCC
2005-9              M4         86358EYJ9     CCC            A+
2005-9              M5         86358EYK6     CCC            BBB+
2005-9              M6         86358EYL4     CCC            BB
2005-9              M7         86358EYM2     CCC            BB
2005-9              M8         86358EYN0     CC             B
2005-9              B1         86358EYQ3     CC             CCC
2005-9              M9         86358EYP5     CC             CCC
2005-HE1            M4         86358EUY0     BB             A+
2005-HE1            M5         86358EUZ7     B-             A
2005-HE1            M6         86358EVA1     CCC            BBB
2005-HE1            M7         86358EVB9     CC             B
2005-HE1            M8         86358EVC7     CC             B
2005-HE1            B1         86358EVE3     CC             CCC
2005-HE1            M9         86358EVD5     CC             CCC
2006-2              M8         86358EF76     D              CC
2006-BNC2           B1         86358GAQ4     D              CC

              Ratings Placed on CreditWatch Negative

                             ABFC Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-WMC1           M-4        04542BPG1     AA/Watch Neg   AA
2005-WMC1           M-5        04542BPH9     AA-/Watch Neg  AA-

                   Meritage Mortgage Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-2              M-5        59001FCV1     AA-/Watch Neg  AA-

               Structured Asset Investment Loan Trust

                                                   Rating
                                                   ------
Transaction         Class      CUSIP         To             From
-----------         -----      -----         --             ----
2005-10             A1         86358EYT7     AAA/Watch Neg  AAA
2005-10             A2         86358EYU4     AAA/Watch Neg  AAA
2005-10             A4         86358EYW0     AAA/Watch Neg  AAA
2005-10             A-5        86358EYX8     AAA/Watch Neg  AAA
2005-10             A6         86358EZJ8     AAA/Watch Neg  AAA
2005-10             M1         86358EYY6     AA+/Watch Neg  AA+
2005-10             M2         86358EYZ3     AA/Watch Neg   AA
2005-10             M3         86358EZA7     AA-/Watch Neg  AA-
2005-8              A3         86358EXN1     AAA/Watch Neg  AAA
2005-8              A4         86358EXP6     AAA/Watch Neg  AAA
2005-8              M1         86358EXQ4     AA+/Watch Neg  AA+
2005-8              M2         86358EXR2     AA/Watch Neg   AA
2005-8              M3         86358EXS0     AA-/Watch Neg  AA-
2005-9              A1         86358EYA8     AAA/Watch Neg  AAA
2005-9              A2         86358EYB6     AAA/Watch Neg  AAA
2005-9              A3         86358EYC4     AAA/Watch Neg  AAA
2005-9              A5         86358EYE0     AAA/Watch Neg  AAA
2005-9              A6         86358EYS9     AAA/Watch Neg  AAA
2005-9              M1         86358EYF7     AA+/Watch Neg  AA+
2005-9              M2         86358EYG5     AA/Watch Neg   AA
2005-9              M3         86358EYH3     AA-/Watch Neg  AA-
2005-HE1            M3         86358EUX2     AA-/Watch Neg  AA-

       Ratings Lowered and Removed From CreditWatch Negative

                            ABFC Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-HE1            B-1            CCC         BB+/Watch Neg
    2005-HE1            B-2            CC          BB/Watch Neg

     Asset Backed Securities Corporation Home Equity Loan Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-HE1            M9             B           BBB-/Watch Neg
    2005-HE1            M10            CCC         BB+/Watch Neg
    2005-HE2            M7             CCC         BBB-/Watch Neg
    2005-HE2            M8             CCC         BB+/Watch Neg
    2005-HE3            M9             CCC         BBB-/Watch Neg
    2005-HE3            M10            CCC         BB+/Watch Neg
    2005-HE4            M11            CCC         BB/Watch Neg
    2005-HE4            M12            CC          BB/Watch Neg
    2005-HE5            M9             CCC         BBB/Watch Neg
    2005-HE5            M10            CCC         BBB-/Watch Neg
    2005-HE5            M11            CC          BB/Watch Neg
    2005-HE6            M8             CCC         BBB/Watch Neg

                   Meritage Mortgage Loan Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-2              M-7            CCC         A/Watch Neg
    2005-2              M-8            CCC         BBB+/Watch Neg
    2005-2              M-9            CCC         BB/Watch Neg
    2005-2              M-10           CC          B/Watch Neg

               Structured Asset Investment Loan Trust

                                           Rating
                                           ------
    Transaction         Class          To          From
    -----------         -----          --          ----
    2005-10             M7             CC          BB/Watch Neg
    2005-10             M8             CC          B/Watch Neg

                        Ratings Affirmed

                            ABFC Trust

          Transaction         Class      CUSIP         Rating
          -----------         -----      -----         ------
          2005-HE1            M-1        04542BKS0     AA+
          2005-HE1            M-2        04542BKT8     AA
          2005-HE1            M-3        04542BKU5     AA-
          2005-HE1            M-4        04542BKV3     A+
          2005-HE1            M-5        04542BKW1     A
          2005-HE1            M-6 &nb