Moody's Investors Service has downgraded the ratings of 435 tranches from 67 payment-option adjustable-rate mortgage transactions issued by Countrywide. Of the downgraded tranches, 174 remain on review for possible further downgrade and 179 others were placed on review for possible downgrade. 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, Moody's said. The collateral consists primarily of first-lien, adjustable-rate, negatively amortizing alternative-A mortgage loans.
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