Two certificates from two transactions issued by CWABS Asset-Backed Certificates Trust have been downgraded by Moody's Investors Service.Class B of series 2005-IM1 was downgraded from Baa3 to Ba3, and class B of series 2005-IM2 was downgraded from Baa2 to Ba1. Moody's also confirmed one CWABS class. The downgrades were attributed to credit enhancement levels that were deemed too low in view of projected losses. "Both transactions had a spread holiday during the first six months, delaying the buildup of overcollateralization," Moody's said. "Furthermore, loans in foreclosure and REO have significantly increased since closing." The transactions are backed by alternative-A mortgage loans.
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