Ameriquest Subprime MBS Classes Downgraded

Four certificates from two subprime deals originated in 2003 by Ameriquest Mortgage Co. have been downgraded by Moody's Investors Service.In addition, 26 certificates from 13 subprime deals originated in 2002 and 2003 by Ameriquest and Argent Mortgage Co. (the retail and wholesale mortgage loan originators, respectively, of ACC Capital Holdings) have been placed on review for possible downgrade. The downgrades were as follows: Ameriquest Mortgage Securities Inc., series 2003-7, class M-4, from Baa2 to Ba2; series 2003-7, class M-5, from Ba1 to Caa1; series 2003-AR2, class M-3, from Ba1 to Caa1; and series 2003-AR2, class M-4, from Ba3 to Ca. The negative rating actions were based on an analysis of the credit enhancement levels provided by excess spread, overcollateralization, and subordinate classes relative to the expected loss, Moody's said. Moody's can be found online at http://www.moodys.com.