Terwin 2nd-Lien MBS Classes Downgraded

Seven certificates from two transactions issued by Terwin Mortgage Trust and backed by second-lien loans have been downgraded by Moody's Investors Service. The downgrades were as follows: series 2005-11, class I-M-1b, from Aa2 to A1, class I-M-2, from Aa3 to Baa3, class II-M-1, from Aa2 to Baa1, and class II-M-2, from Aa3 to Baa3; and series 2005-13SL, class G, from Aaa to Baa1, class M-1, from Caa2 to C, and class B-1, from Ca to C. Moody's also maintained the four downgraded certificates from series 2005-11 on review for possible further downgrade. The downgrades were attributed to the fact that credit enhancement, including excess spread and subordination, was low in view of projected losses. "The actions take into account the continued and worsening performance of transactions backed by closed-end-second collateral," Moody's said.