NEW YORK (Standard & Poor's) Sept. 25, 2007--Standard & Poor's Ratings
Services tod
ay lowered its ratings on three classes from Ace Securities Corp.
Home Equity Loan Trust Series 2006-SL2 (see list).
The downgrades reflect the poor performance of the collateral pool.
Monthly net losses have consistently exceeded monthly excess interest cash
flows, resulting in the complete write-down of the overcollateralization (O/C)
for this deal, as well as $6.88 million in principal write-downs to class B-1.
As a result, we lowered the rating on class B-1 to 'D'.
As of the September 2007 distribution period, total delinquencies were
25.73%, with severe delinquencies of 16.03%. Although it is 17 months
seasoned, the transaction has approximately 11.43% in cumulative realized
losses to date. The outstanding pool factor is 62.82%.
Subordination, overcollateralization, and excess interest cash flows
provide credit support for this transaction. The collateral consists of
30-year, fixed-rate, closed-end second-lien mortgage loans secured by one- to
four-family residential properties.
RATINGS LOWERED
Ace Securities Corp. Home Equity Loan Trust Series 2006-SL2
Rating
Series Class To From
2006-SL2 M-1 AA AA+
2006-SL2 M-5 CCC B
2006-SL2 B-1 D CCC
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