Six tranches from several deals issued by Structured Adjustable Rate Mortgage Loan Trust in 2004 and 2005 have been downgraded by Moody's Investors Service.The downgrades were as follows: series 2004-11, class B3, from Baa2 to Ba3, and class B4, from Ba2 to Ca; series 2005-6XS, class M2, from A2 to Baa3, and class M3, from Baa2 to Caa3; and series 2005-8XS, class M3, from Baa1 to Ba3, and class M4, from Baa2 to Caa1. Moody's also upgraded four tranches and confirmed the ratings on six tranches from the SARM transactions. The downgrades were based on the low credit enhancement levels of the tranches relative to projected losses on the underlying pools, the rating agency said. Class B5 of series 2004-11 is realizing losses, and class B4 is likely to experience writedowns as the deal realizes further losses, Moody's said. Overcollateralization amounts in both 2005 transactions are below their targets, and pipeline losses could put pressure on the subordinate tranches. The transactions consist primarily of first-lien alternative-A mortgage loans originated mostly by Aurora Loan Services Inc.

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