Standard & Poor’s lowered its ratings on 37 classes from three RMBS transactions backed by U.S. prime Jumbo, Alt-A, and subprime mortgage loan collateral issued in 2004 and 2006, the ratings agency said.
It also removed 22 of the lowered ratings from CreditWatch with negative implications and affirmed its ratings on 13 classes from the same transactions.
S&P said the downgrades reflect its belief that the amount of credit enhancement will be insufficient to cover its projected increase in losses due to increases in delinquencies and the current negative condition of the U.S. housing market.
