Seven tranches from Newcastle Mortgage Securities Trust 2007-1 have been downgraded by Moody's Investors Service.The downgrades were as follows: class M-5, from A2 to A3; class M-6, from A3 to Baa2; class M-7-A, from Baa1 to Ba1; class M-7-B, from Baa1 to Ba1; class M-8-A, from Baa2 to Ba3; class M-8-B, from Baa2 to Ba3; and class M-9, from Baa3 to B2. "In its analysis, Moody's has combined its published methodology updates as of July 13th, 2007 to the nondelinquent portion of the transactions," the rating agency said. "Collateral backing these transactions is also experiencing higher-than-anticipated rates of delinquency, foreclosure, and REO relative to credit enhancement levels." The collateral backing these classes consists primarily of first-lien, fixed- and adjustable-rate subprime mortgage loans.

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