Thirty certificates from seven transactions issued by Merrill Lynch Mortgage Investors Trust and backed by second-lien loans have been downgraded by Moody's Investors Service. Moody's also placed three classes of certificates on review for possible downgrade. The downgrades were attributed to credit enhancement levels, including excess spread and subordination, that were deemed to be too low in view of projected losses. "The actions take into account the continued and worsening performance of transactions backed by closed-end-second collateral," the rating agency said, adding that "substantial pool losses" in recent months have eroded credit enhancement available to the mezzanine and senior certificates.
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