A record number of defaults and downgrades on asset-backed securities demonstrated the sector's vulnerability to economic cycles in 2002, according to Standard & Poor's.Last year's downgrade activity was particularly high for manufactured housing loans, one of the few mortgage-related asset categories covered in the S&P rating transition study. Last year, S&P reported 356 ABS downgrades, with 171 investment grade transactions being downgraded and 185 non-investment grade transactions being downgraded.
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