The M-7 classes from People's Choice Home Loan Trust series 2004-1 and 2004-2 have been downgraded from Baa3 to B3 by Moody's Investors Service, and seven certificates from the deals have been placed on review for possible downgrade.The certificates placed on review are as follows: classes M-4, M-5, and M-6 of series 2004-1 and classes M-3, M-4, M-5, and M-6 of series 2004-2. The negative rating actions were taken because credit enhancement levels may be low given the projected losses on the underlying pools, Moody's said. The transactions are backed primarily by first-lien adjustable- and fixed-rate subprime mortgage loans. Moody's can be found online at http://www.moodys.com.
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