Four certificates from Ace Securities Home Equity Loan Trust series 2004-HE1 have been downgraded by Moody's Investors Service.The downgrades were as follows: class M-4, from Baa1 to Baa3; class M-5, from Baa3 to B1; class M-6, from Ba2 to Caa2; and class B, from Caa2 to C. The certificates were downgraded because "credit enhancement levels are low given the current projected losses on the underlying pools," Moody's said. As of the April 25 reporting date, the transaction had zero overcollateralization and the class B tranche had taken approximately $3.4 million in writedowns, the rating agency said. The transaction consists of subprime first-lien adjustable- and fixed-rate loans.

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