RAMP, RASC Classes Downgraded

Moody's Investors Service has downgraded one class and placed five classes on review for possible downgrade from two Residential Asset Mortgage Products Inc. Trust asset-backed securitization deals issued in 2002.Moody's also downgraded one class from a Residential Asset Securities Corp. subprime deal issued in 2001. The downgrades were as follows: RAMP series 2002-RS3, class M-I-2, from Aa2 to A2, and RASC series 2001-KS2, class M-II-1, from Aa2 to A1. The RAMP classes placed on review were as follows: series 2002-RS1, classes M-I-1, M-I-2, and M-II-2; and series 2002-RS3, classes M-II-1 and M-II-3. In addition, Moody's confirmed the rating on one class from one of the RAMP deals and one class from the RASC deal. The negative rating actions were attributed to the weaker-than-expected performance of the mortgage pools and the resulting erosion of credit support. Specifically, the overcollateralization in the 2002-RS1 adjustable-rate pool has been fully exhausted, and the class M-I-3 and M-II-3 certificates have both realized losses, the rating agency said. In addition, the overcollateralization amounts in the 2002-RS3 adjustable-rate pool and the 2001-KS2 fixed-rate pool are "significantly below their targets, and pipeline losses could put pressure on the most subordinate tranches from these pools," Moody's said.