First Franklin MBS Classes Downgraded

Thirty-five certificates from seven deals issued by First Franklin Mortgage Loan Trust have been downgraded by Moody's Investors Service, and nine certificates have been placed on review for possible downgrade. The actions were based on complete or near-complete erosion of overcollateralization, "leaving some of the more subordinate certificates exposed to future losses and many of the tranches sequentially above them in a weaker position," Moody's said. Most of the collateral consists of mortgage loans with high loan-to-value ratios. Moody's can be found online at http://www.moodys.com.