Moody's Investors Service has downgraded one certificate from one transaction issued by Salomon Brothers Mortgage Securities VII Inc. Mortgage Pass-Through Certificates in 2001.Class M-5's rating in the series 2001-2 transaction slid to Caa1 from B2 in the downgrade. "The M-5 subordinate certificate has been downgraded because existing credit enhancement levels may be low given the current projected losses on the underlying pool. The collateral has taken losses causing gradual erosion of the overcollateralization and the unrated M-6 class. As of the April payment date there was less than $170,000 of protection in the form of overcollateralization and an unrated tranche below the M-5 class," according to Moody's. The certificates are secured by seasoned reperforming loans. Moody's can be found on the Web at http://www.moodys.com.

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