Subprime RMBS Classes Downgraded

Standard & Poor's Ratings Services has downgraded 77 classes of mortgage pass-through certificates from 22 U.S. subprime residential mortgage-backed securities deals from various issuers. S&P also affirmed the ratings on 235 other classes from the transactions and 16 additional deals. With the exception of two classes from different transactions that experienced principal writedowns, S&P said it downgraded the securities due to credit support and projected credit enhancement, based on the dollar amount of loans in the delinquency pipelines of the affected deals. In recent months, these deals have experienced deterioration in credit support and "the delinquency pipelines indicate that the pattern of losses could continue," the rating agency said.