Moody's Investors Service this week downgraded its ratings on $8.2 billion of prime jumbo MBS issued by Wells Fargo & Co., while affirming some of its ratings.
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In total, 281 tranches were downgraded while 44 were affirmed on 53 jumbo securities issued by the bank.
Although, the downgrade might sound somewhat alarming in terms of dollar volume, the rating agency noted that "most of these pools have paid down significantly."
The securities in question were issued between 2002 to 2004. Moody's said the remaining loans are affected by "housing and macroeconomic conditions that remain under duress."
Some of the tranches were downgraded to as low as Caa1 and Caa3.
