GSAMP Classes Downgraded

Two tranches from GSAMP Trust 2004-SEA2 have been downgraded by Moody's Investors Service and two others have been placed on review for possible downgrade.The rating actions were as follows: class M-5, downgraded from B1 to Caa2; class B-1, downgraded from B3 to C; and classes M-3 and M-4, placed on review for possible downgrade. The actions were based on "rapid deterioration of overcollateralization and subordination caused by accelerating losses," the rating agency said. The losses were attributed to the number of defaulted loans and "substantial severity of loss" on liquidated collateral. The transaction consists of seasoned subprime mortgage loans, some of which had been delinquent before securitization. Moody's can be found online at http://www.moodys.com.