Moody's Investors Service has downgraded 162 classes of primarily first-lien subprime mortgage-backed securities from five issuers.In addition, Moody's placed 39 classes of certificates on review for possible downgrade. Among the downgraded securities were 77 classes from 13 deals issued by Morgan Stanley; 59 classes from five deals issued by Bear Stearns; and 11 classes from two deals issued by Nomura. The collateral is experiencing higher-than-expected rates of delinquency, foreclosure, and real estate owned relative to credit enhancement levels, Moody's said.

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