Seven certificates from two CIT Home Equity Loan Trust subprime mortgage deals have been downgraded by Moody's Investors Service.The downgrades in series 2002-1 were as follows: class MF-1, from Aa2 to Aa3; class MF-2, from A2 to Baa3; class BF, from Baa2 to B2; and class BV, from Baa2 to Ba1. The downgrades in series 2002-2 were: class MF-2, from A2 to A3; class BF, from Baa2 to Ba1; and class BV, from Baa2 to Ba2. Moody's also confirmed the ratings on three classes from CIT transactions. The downgrades were attributed to a weaker-than-expected performance by the mortgage collateral and the resulting erosion of credit support. The overcollateralization in the fixed-rate pools of both deals and the adjustable-rate pool of the 2002-1 deal are below their targets, and pipeline losses for both deals could deplete the overcollateralization and result in losses on the most subordinate tranches, Moody's said.

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