HarborView Mortgage Classes Downgraded

Five classes of mortgage loan pass-through certificates from HarborView Mortgage Loan Trust 2006-12 have been downgraded by Standard & Poor's Ratings Services. The downgrades were as follows: class B-3, from AA-minus to BBB; class B-4, from A-plus to B; class B-5, from A-minus to CCC; class B-6, from BBB to CC; and class B-7, from CC to BBB-minus. S&P also affirmed the ratings on 10 classes from the transaction. The downgrades "reflect a steady increase in the dollar amount of loans in the transaction's delinquency pipeline over the past six months, combined with deterioration in credit support due to realized losses," the rating agency said. The collateral consists primarily of adjustable-rate first-lien mortgage loans. S&P can be found on the Web at http://www.standardandpoors.com.