Nomura NIM Classes Downgraded

Seven classes from six net-interest-margin securities issued by Nomura Asset Acceptance Corp. have been downgraded by Moody's Investors Service. The downgrades were as follows: Cayman Nomura Asset Acceptance Corp. NIM series 2005-S3, class A, from A3 to C, and series 2006-S5, class N1, from A1 to C, and class N2, from Baa1 to C; Nomura Asset Acceptance Corp. Trust NIM 2005-S4, class A, from Baa2 to C, NIM 2006-S1, class A, from Baa2 to C, NIM 2006-S3, class A, from Baa2 to C, and NIM 2007-S1 class N1, from A1 to C. The downgrades were based on "high levels of delinquency and loss in the underlying second-lien mortgage-backed transactions that [have] rendered any future residual payments to the NIM securities unlikely," Moody's said. The transactions rely on excess spread and prepayment penalties generated by the underlying residential mortgage-backed securitizations.