Moody's Downgrades GSAMP MBS Classes

Six certificates from three GSAMP Trust deals issued in 2006 have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2006-S1, class B-2, from Ba2 to Caa2; series 2006-S2, class B-2, from Ba2 to Caa2; series 2006-S5, class M-6, from Baa2 to Ba3, class M-7, from Baa3 to B2, class B-1, from Ba1 to Ca, and class B-2, from Ba2 to C. In addition, the following five classes were placed on review for possible downgrade: series 2006-S1, class B-1; series 2006-S2, classes M-7 and B-1; and series 2006-S5, classes M-4 and M-5. The negative ratings actions were taken because credit enhancement levels are low given the projected losses on the underlying pools, Moody's said. "The pools of mortgages have seen a spike in losses in recent months, with high loss severity," the rating agency said. The transactions consist of subprime, second-lien, fixed-rate loans. The primary originators for the three transactions were Fremont Investment & Loans, Long Beach Mortgage Co., and New Century Mortgage Co. Moody's can be found online at http://www.moodys.com.