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Ace Securities Home Equity Loan Trust 2006-SL2 Ratings Cut On 3 Closed-End 2nd-Lien Classes
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Publication Date:    Sep 25, 2007 13:36 EST

Ace Securities Home Equity Loan Trust 2006-SL2 Ratings Cut On 3 Closed-End 2nd-Lien Classes
Primary Credit Analyst:
Lal Mahabir, New York (1) 212-438-2395;
lal_mahabir@standardandpoors.com
Secondary Credit Analyst:
Ernestine Warner, New York (1) 212-438-2633;
ernestine_warner@standardandpoors.com
Publication date: 25-Sep-07, 13:36:56 EST
Reprinted from RatingsDirect 


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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