Moody's Eyes Metro Asset Classes

Three subordinate tranches from two subprime mortgage transactions issued by Metropolitan Asset Funding Inc. have been placed under review for possible downgrade by Moody's Investors Service.The affected classes are classes B-2 and B-3 of series 1999-B and class M-2 of series 2000-A. The rating actions were based on the weaker-than-expected performance of the mortgage pools and the resulting erosion of credit support, Moody's said. Overcollateralization in the 1999-B deal is "almost completely depleted" and the class B-3 certificates are likely to experience losses in the near future, the rating agency reported. In addition, overcollateralization in the 2000-A deal has been "fully exhausted," the class B-1 certificates have been fully written down, and the class M-2 certificates have realized losses. The pools are backed by first-lien fixed-rate subprime mortgage loans, including a "significant" amount of seller-financed loans and loans with small average balances, Moody's said. The rating agency can be found online at http://www.moodys.com.