Fitch Affirms $667.2MM & Downgrades $200.6MM from 3 IXIS Subprime Deals.

NEW YORK -- Fitch Ratings has taken the following rating actions on IXIS Real Estate Capital mortgage pass-through certificates. Affirmations total $667.2 million and downgrades total $200.6 million. Break Loss percentages (BL) and Loss Coverage Ratios (LCR) for each class are included with the rating actions as follows:

IXIS Real Estate Capital Trust 2005-HE2

--$49.9 million class A affirmed at 'AAA' (BL:86.4, LCR:5.71);

--$28.9 million class M-1 affirmed at 'AA+' (BL:70.76, LCR:4.67);

--$15.9 million class M-2 affirmed at 'AA' (BL:63.07, LCR:4.17);

--$12.9 million class M-3 affirmed at 'AA-' (BL:56.8, LCR:3.75);

--$22.8 million class M-4 downgraded to 'A' from 'A+' (BL:22.75, LCR:1.5);

--$12.9 million class M-5 downgraded to 'BBB+' from 'A' (BL:20.33, LCR:1.34);

--$11.2 million class M-6 downgraded to 'BBB' from 'A-' (BL:18.19, LCR:1.2);

--$13.3 million class B-1 downgraded to 'BB+' from 'BBB+' (BL:15.62, LCR:1.03);

--$8.6 million class B-2 downgraded to 'BB-' from 'BBB' (BL:13.96, LCR:0.92);

--$9.5 million class B-3 downgraded to 'B' from 'BBB-' (BL:12.17, LCR:0.8);

--$8.6 million class B-4 downgraded to 'CC/DR2' from 'BB+'.

Deal Summary

--Originators: Various;

--60+ day Delinquency: 29.16%;

--Realized Losses to date (% of Original Balance): 0.94%;

--Expected Remaining Losses (% of Current Balance): 15.14%;

--Cumulative Expected Losses (% of Original Balance): 4.59%.

IXIS Real Estate Capital Trust 2005-HE3

--$117.9 million class A affirmed at 'AAA' (BL:66.03, LCR:4.75);

--$29.5 million class M-1 affirmed at 'AA+' (BL:55.56, LCR:3.99);

--$26.4 million class M-2 affirmed at 'AA+' (BL:44.2, LCR:3.18);

--$15.3 million class M-3 affirmed at 'AA' (BL:40.15, LCR:2.89);

--$14.5 million class M-4 affirmed at 'AA-' (BL:35.19, LCR:2.53);

--$13 million class M-5 affirmed at 'A+' (BL:30.55, LCR:2.2);

--$12.2 million class M-6 downgraded to 'BBB' from 'A' (BL:16.78, LCR:1.21);

--$10.7 million class B-1 downgraded to 'BB+' from 'A-' (BL:14.65, LCR:1.05);

--$9.9 million class B-2 downgraded to 'BB-' from 'BBB+' (BL:12.7, LCR:0.91);

--$5.7 million class B-3 downgraded to 'B+' from 'BBB+' (BL:11.64, LCR:0.84);

--$7.6 million class B-4 downgraded to 'B' from 'BBB-' (BL:10.57, LCR:0.76).

Deal Summary

--Originators: Various;

--60+ day Delinquency: 20.29%;

--Realized Losses to date (% of Original Balance): 0.84%;

--Expected Remaining Losses (% of Current Balance): 13.91%;

--Cumulative Expected Losses (% of Original Balance): 5.93%.

IXIS Real Estate Capital Trust 2005-HE4

--$247.4 million class A affirmed at 'AAA' (BL:49.6, LCR:2.92);

--$32.2 million class M1 affirmed at 'AA+' (BL:44.19, LCR:2.61);

--$29.2 million class M2 affirmed at 'AA' (BL:37.49, LCR:2.21);

--$19 million class M3 affirmed at 'AA' (BL:33.09, LCR:1.95);

--$14.4 million class M4 affirmed at 'AA-' (BL:29.74, LCR:1.75);

--$13.9 million class M5 downgraded to 'A' from 'A+' (BL:26.5, LCR:1.56);

--$13.1 million class M6 downgraded to 'BBB+' from 'A' (BL:23.42, LCR:1.38);

--$12.7 million class B1 downgraded to 'BBB' from 'A-' (BL:20.36, LCR:1.2);

--$11 million class B2 downgraded to 'BB+' from 'BBB+' (BL:17.72, LCR:1.04);

--$7.6 million class B3 downgraded to 'B' from 'BBB' (BL:13.57, LCR:0.8);

--$8.4 million class B4 downgraded to 'C/DR4' from 'BBB-'.

Deal Summary

--Originators: Various;

--60+ day Delinquency: 20.28%;

--Realized Losses to date (% of Original Balance): 0.98%;

--Expected Remaining Losses (% of Current Balance): 16.96%;

--Cumulative Expected Losses (% of Original Balance): 9.61%.

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness. Additional details are available in the following research, also available at www.fitchratings.com:

--'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug. 8, 2007);

--'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12 ,2007).

All of Fitch's ratings criteria for US subprime RMBS available at www.fitchratings.com/subprime. For a list of deals currently under analysis please visit www.fitchratings.com/smartview.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which 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.