Twenty-seven classes from 15 Morgan Stanley subprime mortgage-backed securities have been downgraded by Fitch Ratings.Fitch also upgraded two classes and affirmed the ratings on 622 classes from 88 Morgan Stanley transactions. The negative rating actions were attributed to deterioration in the relationship between credit enhancement and expected losses. All the affected securities have serious delinquencies (ranging from loans delinquent more than 60 days to real estate owned) ranging from 20% to nearly 50%, the rating agency said.
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