1st Franklin MBS Classes Downgraded

Seven certificates from four transactions issued in 2004 by First Franklin Mortgage Loan Trust have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2004-FFH1, class M-7, from Baa1 to Ba1, class M-8, from Baa2 to B2, and class M-9, from Baa3 to Caa1; series 2004-FFH2, class B-1, from Ba1 to B2, and class B-2, from Ba2 to Caa1; series 2004-FFH3, class B-2, from Ba1 to B3; and series 2004-FFH4, class B-2, from Ba3 to B1. The downgrades were based on an "analysis of the credit enhancement provided by subordination, overcollateralization, and excess spread relative to expected losses," Moody's said. The transactions are backed by first-lien, adjustable- and fixed-rate subprime mortgage loans. Moody's can be found online at http://www.moodys.com.