Moody's Investors Service said today that it has placed under review for possible downgrade 66 tranches from 33 RMBS deals issued in 2005 and 2006. The collateral backing these classes are made up mainly of first-lien, fixed- and adjustable-rate, Alt-A mortgages. These rating actions affect securities with an original face value of about $318 million, the rating agency said in a release. The majority of rating actions taken today impacted securities that are now rated 'Baa' or lower. No action was taken on securities rated triple-A or double-A.

These 66 securities have been placed on review for possible downgrade due to the higher than expected loan delinquency rates as well as higher than expected pool losses versus the current level of credit enhancement. Although these deals have not felt considerable significant actual pool losses as of yet, the credit enhancement may be low compared with the amount of loans in foreclosure and held as "real estate owned" (REO), said Moody's.

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