Two certificates issued by Terwin Mortgage Trust 2004-EQR1 have been downgraded by Moody's Investors Service and one of them has been placed on review for possible further downgrade.Class M-2 was downgraded from Ba1 to B3 and placed on review for possible further downgrade, and class B-1 was downgraded from Caa3 to C. Class M-1 was also placed on review for possible downgrade. The negative rating actions were attributed to credit enhancement levels that were deemed to be low in view of current loss projections. "This transaction is not performing as anticipated due to the rising loss severities, delinquency rates, and realized losses," Moody's said. The collateral consists of nonperforming first-lien residential mortgage loans.
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