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SACO I Trust Ratings Lowered On 26 Closed-End Second-Lien Classes From Eight Series
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Publication Date:    Sep 25, 2007 17:15 EST

SACO I Trust Ratings Lowered On 26 Closed-End Second-Lien Classes From Eight Series
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, 17:15:44 EST
Reprinted from RatingsDirect 


NEW YORK (Standard & Poor's) Sept. 25, 2007--Standard & Poor's Ratings 
Services today lower
ed its ratings on 26 classes of mortgage-backed securities 
issued by eight SACO I Trust series (see list).
     The downgrades reflect the deteriorating performance of the collateral 
pools as monthly net losses continue to significantly outpace monthly excess 
interest cash flows, resulting in principal write-downs to the 
overcollateralization (O/C) for these deals. Consequently, the following 
classes experienced principal write-downs: B-4 from series 2005-9, II-B-3 and 
II-B-4 from series 2006-5, B-3 and B-4 from series 2006-6, B-4 from series 
2006-7, B-4 from series 2005-WM2, and B-4 from 2005-WM3. The principal 
balances for class II-B-4 from series 2006-5 and class B-4 from series 2006-6 
have been written down to zero.
     As of the August 2007 distribution period, total delinquencies ranged 
from 10.64% (series 2005-8) to 22.30% (series 2005-WM2), while cumulative 
realized losses ranged from 6.56% (series 2005-8) to 10.86% (series 2005-WM3). 
Seasoning for these transactions ranged from 13 months to 22 months, with 
outstanding pool factors of about 65% or less.
     Subordination, O/C, and excess interest cash flows provide credit support 
for these transactions. The collateral consists of 30-year, fixed-rate, 
closed-end second-lien mortgage loans secured by one- to four-family 
residential properties.


RATINGS LOWERED

SACO I Trust 
                     Rating
Series     Class   To      From
2005-8     B-2     BB      BB+
2005-8     B-3     B-      B
2005-8     B-4     D       CCC
2005-10    I-B-4   CCC     B
2005-10    II-B-1  BBB-    BBB+
2005-10    II-B-2  B+      BB
2005-10    II-B-3  CCC     B
2005-WM2   B-3     B-      B
2005-WM2   B-4     D       CCC
2005-WM3   B-3     CCC     B
2005-WM3   B-4     D       CCC
2006-4     M-4     A-      A+
2006-4     M-5     BB+     BBB+
2006-4     M-6     B       BB
2006-4     B-1     CCC     B
2006-4     B-2     CCC     B
2006-4     B-4     D       CCC
2006-5     I-B-3   CCC     B
2006-5     II-B-1  CCC     B
2006-5     II-B-3  D       CCC
2006-5     II-B-4  D       CCC
2006-6     M-6     CCC     B
2006-6     B-3     D       CCC
2006-6     B-4     D       CCC
2006-7     M-6     CCC     B
2006-7     B-4     D       CCC

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