Fitch Rates Morgan Stanley Home Equity Loan Trust $890.1MM Mtge P-T Ctfs, Series 2005-2.

NEW YORK -- Morgan Stanley Home Equity Loan Trust 2005-2 mortgage pass-through certificates are rated by Fitch as follows:

-- $730.8 million class A-1ss, A-1mz, A-2a, A-2b, and A-2c 'AAA';

-- $35.4 million class M-1 'AA+';

-- $25.7 million class M-2 'AA';

-- $17.9 million class M-3 'AA-';

-- $16.5 million class M-4 'A+';

-- $14.7 million class M-5 'A';

-- $14.7 million class M-6 'A-';

-- $12.4 million class B-1 'BBB+';

-- $11.9 million class B-2 'BBB';

-- $10.1 million class B-3 'BBB-'.

The 'AAA' rating on the senior certificates reflects the 20.45% total credit enhancement provided by the 3.85% class M-1, the 2.80% class M-2, the 1.95% class M-3, the 1.80% class M-4, the 1.60% class M-5, the 1.60% class M-6, the 1.35% class B-1, the 1.30% class B-2, the 1.10% class B-3, and the 3.10% initial overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the integrity of the transaction's legal structure, as well as the primary servicing capabilities of HomeEq Servicing Corporation, JPMorgan Chase Bank, National Association, and Countrywide Home Loans Servicing LP, which are all rated 'RPS1' by Fitch. Deutsche Bank National Trust Company will act as trustee. All of the mortgage loans were purchased by an affiliate of the depositor from Accredited Home Lenders, Inc., First NLC Financial Services, LLC, Meritage Mortgage Corporation, MILA, Inc., and Wilmington Finance, a division of AIG Federal Savings Bank.

As of the cut-off date, May 1, 2005, the mortgage loans have an aggregate balance of $918,607,345. The weighted average mortgage rate is approximately 7.252%, and the weighted average remaining term to maturity is 349 months. The average cut-off date principal balance of the mortgage loans is approximately $154,987. The weighted average original loan-to-value ratio is 82.37%, and the weighted average Fair, Isaac & Co. (FICO) score is 638. The properties are primarily located in California (29.4%), Florida (12.5%), and Illinois (6.4%).