Six classes of notes from American Home Mortgage Investment Trust series 2004-1 and series 2006-3 have been downgraded by Standard & Poor's Ratings Services.The downgrades were as follows: series 2004-1, class IV-M-3, from BBB to B; and series 2006-3, class IV-M-6, from A-minus to BBB-plus, class IV-M-7, from BBB-plus to BB, class IV-M-8, from BBB-plus to BB, class IV-M-9, from BBB-minus to B, and class IV-M-10, from BB to CCC. In addition, S&P placed class II-M-3 of series 2004-1 on Credit Watch with negative implications and affirmed the ratings on 285 classes from 16 transactions issued by American Home Mortgage Investment Trust and American Home Mortgage Assets Trust. The negative rating actions on series 2004-1 were attributed to recent losses that have caused a deterioration in credit support and reduced overcollateralization to below their respective targets. The downgrades affecting series 2006-3 reflect S&P's recently revised closed-end second-lien surveillance assumptions, which currently project losses of approximately $6.75 million on the delinquency pipeline, the rating agency reported. "We expect the transaction to realize these losses over the next six months, which will result in a continuous erosion of credit enhancement," S&P said. American Home Mortgage Investment Corp. filed for bankruptcy on Aug. 8, but its servicing operations remain open. S&P can be found online at http://www.standardandpoors.com.

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