Granite 1999-1, a GBP600 million ($992 million) MBS deal arranged by JP Morgan for British mutual-turned-bank Northern Rock, has suddenly become surrounded by confusion after Moody's issued a statement that raised questions about the transfer of the mortgages that back the deal before concluding that all was well.

Though the statement confirmed the agency's triple-A rating of the deal's senior tranche it also said that it no longer considered the transaction "to be materially over-enhanced."

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