The ratings of 108 tranches from 10 payment-option adjustable-rate mortgage transactions issued by Bear Stearns have been downgraded by Moody's Investors Service. Forty-eight tranches remain on review for possible further downgrade, and 24 others were placed on review for possible downgrade. Moody's said the ratings were downgraded, in general, based on higher-than-expected rates of delinquency, foreclosure, and real estate owned in the underlying collateral relative to credit enhancement levels. The collateral consists primarily of first-lien, adjustable-rate, negatively amortizing alternative-A mortgage loans.
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