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Fitch Rates A-B Securities Corp $1.06B Home Equity Loan Trust WMC 2005-HE5.

NEW YORK -- Fitch has rated the Asset-Backed Securities Corporation Home Equity Loan Trust, series WMC 2005-HE5, as follows:

-- $844.35 million classes A1, A1A, A2, and A2A 'AAA';

-- $72.82 million classes M-1 and M-2 'AA+';

-- $21.01 million class M-3 'AA';

-- $19.40 million class M-4 'AA-';

-- $16.70 million class M-5 'A+';

-- $17.78 million class M-6 'A';

-- $14.55 million class M-7 'A-';

-- $13.47 million class M-8 'BBB+'

-- $10.78 million class M-9 'BBB';

-- $7 million class M-10 'BBB-';

-- $10.78 million class M-11 'BB+';

-- $11.85 million class M-12 'BB'.

The 'AAA' rating on the senior certificates reflects the 21.65% total credit enhancement provided by the 3.60% class M-1, the 3.25% class M-2, the 1.95% class M-3, the 1.80% class M-4, the 1.55% class M-5, the 1.65% class M-6, the 1.35% class M-7, the 1.25% class M-8, the 1.00% class M-9, the 0.65% class M-10, the 1.00% non-offered class M-11, the 1.10% non-offered class M-12, and the 1.50% initial and target 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 Countrywide Home Loans Servicing LP. Wells Fargo Bank, N.A. will act as Trustee.

The certificates are supported by two collateral groups. The group I mortgage pool consists of adjustable-rate and fixed-rate, first and second lien mortgage loans that may or may not conform to Fannie Mae and Freddie Mac loan balances, and has a cut-off date pool balance of $592,506,187. Approximately 22.51% of the mortgage loans are fixed-rate, 77.49% are adjustable-rate, and 16.75% are second lien. The weighted average loan rate is approximately 7.247%. The weighted average remaining term to maturity (WAM) is 327 months. The average principal balance of the loans is approximately $181,695. The weighted average loan to value (LTV) of the first and second lien mortgage loans is approximately 81.12% and 99.3%, respectively. The properties are primarily located in California (60.63%), New York (5.71%) and Virginia (4.05%).

The group II mortgage pool consists of adjustable-rate and fixed-rate, first and second lien mortgage loans that conform to Fannie Mae and Freddie Mac loan balances, and has a cut-off date pool balance of $485,160,533. Approximately 12.44% of the mortgage loans are fixed-rate, 87.56% are adjustable-rate, and 1.05% are second lien. The weighted average loan rate is approximately 6.788%. The WAM is 354 months. The average principal balance of the loans is approximately $198,755. The weighted average LTVs of the first lien and second lien mortgage loans are approximately 80.53% and 99.67%, respectively. The properties are primarily located in California (38.07%), New York (7.50%) and Florida (6.46%).

All of the mortgage loans were purchased by an affiliate of the depositor from WMC Mortgage Corporation (WMC). WMC is a mortgage banking company incorporated in the State of California. WMC was owned by a subsidiary of Weyerhaeuser Company until May 1997 when it was sold to WMC Finance Co., a company owned principally by affiliates of Apollo Management, L.P., a private investment firm. On June 14, 2004, GE Consumer Finance acquired WMC Finance Co. As of March 2000, WMC changed its business model to underwrite and process 100% of its loans on the internet via 'WMC Direct'.

For federal income tax purposes, multiple real estate mortgage investment conduit (REMIC) elections will be made with respect to the trust estate.

Fitch's rating definitions are available on the agency's free of charge web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the free site for seven days.
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Publication:Business Wire
Date:Jun 7, 2005
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