The ratings of 86 tranches from 11 mortgage-backed securities deals issued by Morgan Stanley in 2006 and late 2005 have been downgraded by Moody's Investors Service.In addition, Moody's has placed 37 tranches under review for possible downgrade, and four downgraded tranches remain on review for possible downgrade. The negative rating actions were attributed to higher-than-expected rates of delinquency, foreclosure, and real estate owned in the underlying collateral relative to credit enhancement levels. The collateral consists primarily of first-lien, fixed- and adjustable-rate alternative-A mortgage loans.

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