In a bold move today Standard & Poor's placed 612 classes of RMBSbacked by U.S. subprime collateral on creditwatch with negative implications, subsequently affecting approximately $12.08 billion in rated securities, a move some market players have been loathing for months. The injured classes represent 2.13% of the $565.3 billion in U.S. RMBS rated by S&P between the fourth quarter of 2005 and the fourth quarter of 2006.

And S&P was not the only ratings agency to slash RMBS ratings today. In fact, Moody's Investors Servicedowngraded 399 2006 subprime RMBS and placed an additional 32 RMBS under review for possible downgrade the exact same day.

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