Four tranches from three Merrill Lynch Mortgage Investors Inc. deals issued in 2003 have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2003-WMC1, class B-1, from Baa2 to B1, and class B-2, from Baa3 to Caa1; series 2003-WMC2, class B-2, from Baa2 to B1; and series 2003-WMC3, class B-3, from Baa3 to Ba1. Moody's also confirmed the rating on one Merrill certificate. The downgrades were attributed to credit enhancement levels that are low given the projected losses on the underlying pools. "The pools of mortgages have seen losses in recent months and future loss could cause a more significant erosion of the overcollateralizaton," the rating agency said. The transactions consist of subprime first-lien adjustable- and fixed-rate mortgage loans. Moody's can be found online at http://www.moodys.com.

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