Moody's Downgrades 2nd-Lien MBS Classes

Twenty-three certificates in second-lien mortgage-backed security transactions from four issuers have been downgraded by Moody's Investors Service. The downgrades affected the following securities: eight certificates from two Ace Securities Corp. deals; seven certificates from one Allegiance Bancorp Trust deal; six certificates from one C-BASS deal; and two certificates from one Fremont Home Loan Trust deal. Moody's also placed five certificates on review for possible further downgrade. The rating actions were taken because "credit enhancement levels, including excess spread and subordination, were low" in view of projected losses, Moody's said. The actions take into account the "continued and worsening performance" of transactions backed by closed-end second-lien loans.