Standard and Poor's Ratings Service lowered ratings today on 189 classes from 49 subprime RMBS for $5.92 billion issued in 2005, reflecting probable projected credit support for the affected classes is insufficient to maintain the previous ratings. Moody's Investors Service downgraded nearly 150 second-lien classes because of declining second-lien performance as well as credit enhancement levels, including excess spread and subordination, that were low compared to the current projected loss numbers at the previous rating levels. Nearly 300 Alt-A classes were downgraded by Moody's as a result of higher than anticipated rates of delinquency, foreclosure and REO in the underlying collateral relative to credit enhancement levels.
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