S&P Downgrades CWMBS Certificates

The rating on CWMBS Inc.'s mortgage pass-through certificates Series 1995-M, Class B5 has been lowered from B to CCC by Standard & Poor's.The rating agency attributed the action to "the continuing erosion of subordinated loss protection," which it said increases the likelihood of principal losses in the class. S&P cited a July 25 trustee remittance statement indicating that credit support for the class had declined to approximately 42 basis points, 28 bp less than S&P's original requirement of 70 bp for a B rating. S&P said its projections suggest that the loss protection for Class B5 could drop to 15 bp once foreclosure properties and real estate owned have been liquidated. If that occurs, the rating could be lowered again, the rating agency said. S&P's website address is http://www.ratings.standardpoor.com.