Six tranches from GSAMP Trust 2004-SEA2 have been downgraded by Moody's Investors Service.The downgrades were as follows: class M-2, from A2 to Baa2; class M-3, from A3 to Baa3; class M-4, from Baa1 to Ba2; class M-5, from Baa2 to B1; class B-1, from Ba3 to B3; and class B-2, from Caa3 to C. The downgrades were based on "rapid deterioration" of overcollateralization and subordination caused by "an accelerating pace of losses," the rating agency said. The losses were attributed to a high frequency of defaulted loans and "substantial severity" of loss on liquidated collateral. The transaction was issued with seasoned subprime mortgage loans, some of which had experienced delinquency prior to securitization.
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