Three tranches from one alternative-A transaction issued by Prime Mortgage Trust have been downgraded by Moody's Investors Service. The downgrades were as follows: Prime Mortgage Trust 2006-CL1, class M-4, from Baa1 to Baa3; class M-5, from Baa2 to Ba3; and class M-6, from Ba1 to B3. Class M-6 remains on review for possible further downgrade. The downgrades were based, in general, on higher-than-expected rates of delinquency, foreclosure, and real estate owned in the underlying collateral relative to credit enhancement levels, the rating agency said. The collateral consists primarily of first-lien, fixed -rate, alt-A mortgage loans.
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