Renaissance Subprime Classes Downgraded

Four certificates from Renaissance Home Equity Loan Trust deals issued in 2002 and 2003 and consisting primarily of subprime first-lien loans have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2002-1, class M-2, from A2 to Baa2, and class B, from Ba2 to Caa2; series 2002-4, class B, from Baa2 to Ba2; and series 2003-2, class M-4, from Baa2 to Ba2. Moody's also upgraded nine classes from five Renaissance transactions. The downgrades were attributed to credit enhancement levels that are low given the projected losses on the underlying pools. "The pool of mortgages has seen losses in recent months, and future loss could cause a more significant erosion of the overcollateralization," the rating agency said. Moody's can be found online at http://www.moodys.com.