Fitch Ratings upgraded two and downgraded five tranches across the Southern Pacific Financing transactions — the two upgrades were of the Class D and E in SPF 04-A and the downgrades were the Class D and E from SPF 05-B and the class C, D1 and E of SPF 06-A.

Barclays Capital analysts said that the arrears in all three transactions have been increasing, although in the case of SPF 04-A, the arrears are largely a result of de-leveraging of the pool, which, in actual terms means arrears have been falling.

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