2008-05-07 23:58:08 -

- Fitch Ratings has taken the following rating actions on the Morgan Stanley mortgage pass-through certificates listed below:

Series 2002-AM3

--Class A-2 affirmed at 'AAA' and removed from Rating Watch Negative;

--Class A-3 affirmed at 'AAA';

--Class M-1 affirmed at 'AA';

--Class M-2 affirmed at 'A';

--Class B-1 affirmed at 'B';

--Class B-2

downgraded to 'C/DR4' from 'CC/DR2'.

The collateral on the aforementioned transactions consists of various term fixed- and adjustable-rated mortgages (ARMs) extended to subprime borrowers. As of the March 2008 remittance date, the pool has experienced 2.79% of loss (as a percentage of original balance). The deal has 18.46% in 60+ delinquency (including loans in bankruptcy, foreclosure and REO) and the pool factor is approximately 8%.

Class A-2 has a financial guaranty provided by MBIA. For more information please refer to the April 4 press release 'Fitch Moves to Underlying Ratings for MBIA-Insured Bonds' available on the Fitch Ratings web site at www.fitchratings.com

Further information regarding current delinquency, loss, and credit enhancement statistics is also available at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Tara Sweeney, 212-908-0347
Michele Patterson, 212-908-0779
or
Media Relations:
Sandro Scenga, 212-908-0278