Moody's Eyes New Century Classes

One class from each of two deals originated by New Century Mortgage Corp. have been placed under review for possible downgrade by Moody's Investors Service.The negative watchlist placements were as follows: class B1, Morgan Stanley Dean Witter Capital I Inc., series 2001-NC1; and class B2, CWABS Inc., series 2001-BC1. In addition, Moody's placed 33 certificates from 18 deals originated by New Century under review for possible upgrade. The transactions, issued in 1999-2000, are backed by first-lien adjustable- and fixed-rate subprime mortgage loans. The classes placed on review for possible downgrade were watchlisted because credit enhancement is low given the projected losses on the underlying pools, the rating agency said. The deals have taken losses, and "pipeline loss could cause eventual erosion of the overcollateralization," Moody's said. The rating agency can be found online at http://www.moodys.com.