Five certificates from two deals issued by SACO I Trust in 2006 have been downgraded by Moody's Investors Service, and one of the downgraded classes and three other classes have been placed on review for possible downgrade.The downgrades were as follows: series 2006-1, class M-3, from Baa2 to B3 (and placed on review for possible further downgrade), and class M-4, from Baa3 to C; and series 2006-12, class I-M-2, from A2 to B3, class I-M-3, from Baa2 to Ca, and class I-M-4, from Ba1 to C. Classes M-1 and M-2 of series 2006-1 and class I-M-1 of series 2006-12 were placed on review for possible downgrade. The rating actions were taken because the transactions, backed by home equity line-of-credit loans, have seen recent losses that have surpassed the excess spread available, thereby depleting the overcollateralization, Moody's said. The rating agency can be found online at http://www.moodys.com.
