Fitch Ratings took action on SCIP 2, downgrading the 475 million ($618.6 million) Class B2 notes one notch to AA-' from double-A, following its review of the latest quarterly performance report and a credit analysis of the residual portfolio. The rating agency put the transaction's Class B2 and Class A5 notes on Rating Watch Negative last Nov. 7, but has now affirmed the 2.2 billion Class A5s at triple-A (ASR, 11/20/06).

The downgrade had been widely expected by industry sources following last week's investor report. However, the decision to take the A5 notes off rating watch comes as a surprise, said Societe Generale analysts, who expected the notes would remain on watch for downgrade.

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