Three certificates from MASTR Second Lien Trust series 2005-1 have been downgraded by Moody's Investors Service.The downgrades were as follows: class M-5, from Baa2 to B1; class M-6, from Ba2 to B3; and class M-7, from B2 to Ca. The downgrades were attributed to credit enhancement levels, including excess spread, that may be too low in view of the projected losses. "The projected pipeline loss has increased over the past few months and is likely to affect the credit support for these certificates," Moody's said. "Furthermore, many underlying first-lien loans are likely to have pending interest rate resets, which may cause an increase in delinquencies and defaults on the second-lien loans in the pool." The transaction is backed by subprime second-lien loans.

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