The ratings of five classes from three Terwin Mortgage Trust securitizations have been placed on review for possible downgrade by Moody's Investors Service.The affected securities are as follows: series 2005-7SL, classes B-6 and B-7; series 2005-11, class I-B-7; series 2005-11, class II-B-5; and series 2006-4SL, class B-6. The watchlisting actions were attributed to recent losses that have eroded overcollateralization, possibly lowering credit enhancement levels too much to support the existing ratings. The underlying collateral backing the transactions consists mainly of second-lien residential mortgage loans.
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