Twenty-seven classes of certificates from four deals issued by Aegis Asset-Backed Securities Trust in 2005 have been downgraded by Moody's Investors Service.The downgrades were attributed to an analysis of the credit enhancement provided by subordination, overcollateralization, and excess spread relative to expected losses. "A high pipeline of seriously delinquent loans has caused the protection available to those tranches to be diminished," Moody's said. "Losses have eroded the overcollateralization, leaving the rated bonds less protected." The deals are backed by subprime mortgage loans.

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