Moody's Eyes IndyMac ABS Classes

Five classes of IndyMac Home Equity Mortgage Loan Asset Backed Trust series SPMD 2000-C have been placed under review for possible downgrade by Moody's Investors Service.The affected classes are: class MF-1, class MF-2, class BF, class MV-2, and class BV. The securitization is backed by subprime mortgage and manufactured housing loans that were originated by IndyMac Bank FSB. The negative rating action was attributed to erosion of credit support and a pipeline of seriously delinquent loans. "The transaction has lender-paid mortgage insurance which will reduce the severity of loss associated with many of the riskier loans, including the manufactured housing loans," Moody's said. "However, the mortgage insurance may not fully insulate investors against the losses associated with defaulted loans."