Moody's Eyes Option One MBS Classes

Two classes from Option One Mortgage Loan Trust series 2000-3 and 2001-1 have been placed on review for possible downgrade by Moody's Investors Service.The affected securities are class M3 of series 2000-3 and class M2 of series 2001-1. In addition, Moody's placed on review for possible upgrade 30 certificates from 12 Option One deals. The reviews for possible downgrade were prompted by credit enhancement levels that are low in view of projected losses on the underlying pool. "The transaction has taken losses, and pipeline loss could cause eventual erosion of the overcollateralization," the rating agency said. The transactions are backed by first- and second-lien adjustable- and fixed-rate subprime mortgage loans. Moody's can be found online at http://www.moodys.com.