First Franklin MBS Classes Downgraded

Five classes from three deals issued by First Franklin Mortgage Loan Trust have been downgraded by Moody's Investors Service.The downgrades were as follows: First Franklin Mortgage Loan Trust 2003-FFB, class B-1, from Baa2 to B3, and class B-2, from Baa3 to B3; First Franklin Mortgage Loan Trust series 2003-FFC, class M-3, from Baa1 to Ba1, and class M-4, from Baa2 to Ba1; and FFML Net Interest Margin Trust 2003-FFB notes, from Baa2 to B3. The downgrades were based on credit enhancement levels that were low in view of current loss projections, Moody's said. "Realized losses have caused the overcollateralization amount to decline below the required level," the rating agency said. "In addition, losses are not all covered by the mortgage insurance, and the subordinate tranches have therefore less credit protection than expected."