Duff & Phelps Downgrades 4 MBS Classes

Duff & Phelps Credit Rating Co., Chicago, has downgraded four public classes of residential mortgage pass-through certificates and placed a fifth on Rating Watch-Down.Three of the downgraded securities are from transactions issued by DLJ Mortgage Acceptance Corp.: DLJ 1995-Q3 P1, Class IB-1, downgraded from B to CCC and left on Rating Watch-Down; DLJ 1994-Q1 P1, Class IB-1, downgraded from CCC to DD and removed from Rating Watch-Down; and DLJ 1996-Q2, Class B-2, downgraded from CCC to DD and removed from Rating Watch-Down. The fourth downgraded security was issued by MDC Mortgage Funding Corp.: MDC 1994-LB7 G2, Class IIB-1, downgraded from B to CCC and left on Rating Watch-Down. The security placed on Rating Watch-Down was DLJ 1996-Q2, Class B-1, which is now rated A. The downgrades stemmed from "a continued decrease in credit enhancement, in combination with high levels of delinquent loans, foreclosure properties, and REO properties," the rating agency said. The securities are all backed by pools of subprime mortgage loans, originated by Quality Mortgage USA Inc. in the case of the DLJ transactions and by Long Beach Bank FSB in the MDC transaction. Duff & Phelps's website address is http://www.dcrco.com.