Moody's Investors Service has downgraded the ratings of 59 tranches from 12 RALI deals issued in 2006 and late 2005.Moody's has also placed the ratings of 15 tranches under review for possible downgrade, and two downgraded tranches remain on review for possible downgrade. The negative rating actions were based on higher-than-anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels, Moody's said. The collateral consists primarily of first-lien, fixed- and adjustable-rate alternative-A mortgage loans.

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