Two tranches from Aames Mortgage Trust 2003-1 have been downgraded by Moody's Investors Service.Class B was downgraded from Ba1 to Caa3, and class M-6 was downgraded from Baa3 to B2. The downgrades were attributed to credit enhancement levels that "may be low" given the projected losses on the underlying pool. "Although the deal is performing within Moody's original loss expectations, credit enhancement has declined due to stepped-down enhancement levels combined with high back-ended losses," the rating agency said. The transaction consists of first- and second-lien, adjustable- and fixed-rate subprime mortgage loans.

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