Moody's Downgrades Certain Bear Stearns Alt-A deals
New York, April 24, 2008 -- Moody's Investors Service has downgraded the ratings of 98 tranches from
18 Alt-A transactions issued by Bear Stearns. Fifty seven
tranches remain on review for possible further downgrade. Additionally,
34 tranches were placed on review for possible downgrade, and the
ratings on 5 tranches were confirmed.
The collateral backing these transactions consists primarily of first-lien,
fixed and adjustable-rate, Alt-A mortgage loans.
Ratings were downgraded, in general, based on higher than
anticipated rates of delinquency, foreclosure, and REO in
the underlying collateral relative to credit enhancement levels.
The actions described below are a result of Moody's on-going review
process.
Complete rating actions are as follows:
Issuer: Bear Stearns ARM Trust 2005-6
Cl. B-2, Downgraded to A3 from A2
Cl. B-3, Downgraded to Ba1 from Baa2
Issuer: Bear Stearns ARM Trust 2005-12
Cl. II-1-A-1, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-2-A-2, Placed on Review for Possible
Downgrade, currently Aa1
Cl. II-3-A-2, Placed on Review for Possible
Downgrade, currently Aa1
Cl. II-4-A-1, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-5-A-1, Placed on Review for Possible
Downgrade, currently Aaa
Cl. I-B-1, Downgraded to Aa3 from Aa2
Cl. I-B-2, Downgraded to Baa1 from A2
Cl. I-B-3, Downgraded to Ba3 from Baa3
Cl. II-B-1, Downgraded to Baa1 from Aa2
Cl. II-B-2, Downgraded to B1 from A2
Cl. II-B-3, Downgraded to B3 from Baa2;
Placed Under Review for further Possible Downgrade
Issuer: Bear Stearns Asset Backed Securities I Trust 2005-AC5
Cl. I-B-1, Confirmed at Baa1
Cl. I-B-2, Confirmed at Baa2
Cl. I-B-4, Downgraded to Ca from Ba2
Cl. I-B-3, Downgraded to B1 from Baa3
Issuer: Bear Stearns Asset Backed Securities I Trust 2005-AC6
Cl. I-B-2, Confirmed at Baa2
Cl. I-B-3, Confirmed at Baa3
Cl. I-B-4, Downgraded to Caa3 from Ba2
Cl. II-B-2, Downgraded to Ba3 from Baa1
Issuer: Bear Stearns Asset Backed Securities Trust I Series 2005-AC7
Cl. B-2, Confirmed at Baa2
Cl. B-3, Downgraded to Ba2 from Baa3
Cl. B-4, Downgraded to Ca from Ba2
Issuer: Bear Stearns Asset Backed Securities I Trust 2005-AC8
Cl. A-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-4, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-5, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-6, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-7, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-8, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-9, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-10, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. PO, Placed on Review for Possible Downgrade, currently
Aaa
Issuer: Bear Stearns Asset Backed Securities I Trust 2005-AC9
Cl. M-1, Downgraded to Aa3 from Aa2
Cl. M-2, Downgraded to Baa1 from A2
Cl. M-3, Downgraded to Ba1 from A3
Cl. B-1, Downgraded to Ba2 from Baa1
Cl. B-2, Downgraded to B3 from Baa2
Cl. B-3, Downgraded to B3 from Baa3; Placed Under
Review for further Possible Downgrade
Cl. B-4, Downgraded to Ca from Caa2
Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC1
Cl. II-1A-1, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-1X, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-1PO, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-2A-1, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-2A-2, Placed on Review for Possible
Downgrade, currently Aa1
Cl. II-2X, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-2PO, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-M-2, Downgraded to Baa1 from A2
Cl. I-M-3, Downgraded to Ba2 from A3
Cl. I-B-1, Downgraded to B3 from Baa1;
Placed Under Review for further Possible Downgrade
Cl. I-B-2, Downgraded to B3 from Baa2;
Placed Under Review for further Possible Downgrade
.Cl. I-B-3, Downgraded to Ca from Ba3
Cl. I-B-4, Downgraded to Ca from Caa3
Cl. II-B-1, Downgraded to Ba3 from Aa2
Cl. II-B-2, Downgraded to B3 from Baa3;
Placed Under Review for further Possible Downgrade
Cl. II-B-3, Downgraded to Ca from B3
Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC2
Cl. II-1A-2, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-1A-3, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-1A-4, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-1A-5, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-1A-6, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-2A-1, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-2A-2, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-2A-3, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-2A-4, Placed on Review for Possible
Downgrade, currently Aaa
Cl. II-PO, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-X, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-M-2, Downgraded to Baa1 from A2
Cl. I-M-3, Downgraded to Ba3 from A3
Cl. I-B-1, Downgraded to B2 from Baa1;
Placed Under Review for further Possible Downgrade
Cl. I-B-2, Downgraded to B3 from Baa2;
Placed Under Review for further Possible Downgrade
Cl. I-B-3, Downgraded to Ca from B1
Cl. II-B-1, Downgraded to Ba2 from Aa2
Cl. II-B-3, Downgraded to Ca from B3
Cl. II-B-2, Downgraded to Ca from Ba1
Cl. I-B-4, Downgraded to Ca from Caa3
Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC3
Cl. M-3, Downgraded to Baa3 from A3
Cl. B-1, Downgraded to B3 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. B-2, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. B-3, Downgraded to Ca from B1
Cl. B-4, Downgraded to Ca from Caa3
Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC4
Cl. A-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aa1
Cl. M-1, Downgraded to B1 from Aa2
Cl. M-2, Downgraded to B3 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-3, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. B-2, Downgraded to Caa1 from Baa3; Placed
Under Review for further Possible Downgrade
Cl. B-3, Downgraded to Ca from Ba1
Cl. B-4, Downgraded to Ca from Ba3
Cl. B-5, Downgraded to Ca from B3
Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC5
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aa1
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to B2 from Aa2; Placed Under
Review for further Possible Downgrade
Cl. M-2, Downgraded to B3 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-3, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B3 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Caa1 from Baa2; Placed
Under Review for further Possible Downgrade
Cl. B-2, Downgraded to Caa1 from Baa3; Placed
Under Review for further Possible Downgrade
Cl. B-3, Downgraded to Ca from Ba1
Cl. B-4, Downgraded to Ca from Ba3
Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AC1
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aa1
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to B1 from Aa2
Cl. M-2, Downgraded to B1 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-3, Downgraded to B2 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B2 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. B-2, Downgraded to Ca from Ba2
Cl. B-3, Downgraded to Ca from B1
Cl. B-4, Downgraded to Ca from Caa3
Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AC2
Cl. A-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to B1 from Aa2
Cl. M-2, Downgraded to B1 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-3, Downgraded to B2 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B2 from Baa3; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Ca from Ba1
Cl. B-2, Downgraded to Ca from Ba3
Cl. B-3, Downgraded to Ca from Caa1
Cl. B-4, Downgraded to Ca from Caa2
Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AC3
Cl. A-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to B1 from Aa2; Placed Under
Review for further Possible Downgrade
Cl. M-2, Downgraded to B2 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-3, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B3 from Baa3; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Ca from Ba1
Cl. B-2, Downgraded to Ca from Ba2
Cl. B-3, Downgraded to Ca from Caa1
Cl. B-4, Downgraded to Ca from Caa2
Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AC4
Cl. A-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aa1
Cl. A-4, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to B3 from Aa2
Cl. M-2, Downgraded to B3 from Ba1; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Ca from Caa1
Cl. B-2, Downgraded to Ca from Caa3
Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AC5
Cl. A-4, Placed on Review for Possible Downgrade,
currently Aa1
Cl. A-7, Placed on Review for Possible Downgrade,
currently Aa1
Cl. B-1, Downgraded to Ba3 from Aa2
Cl. B-2, Downgraded to B2 from Ba2
Issuer: Bear Stearns Mortgage Funding Trust 2006-AC1
Cl. A-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-4, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to B2 from Aa2
Cl. M-2, Downgraded to B2 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-3, Downgraded to B3 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Ca from Ba1
Cl. B-2, Downgraded to Ca from B1
Cl. B-3, Downgraded to Ca from B2
Cl. B-4, Downgraded to Ca from B3
A list of these actions including CUSIP identifiers may be found at:
Excel: http://www.moodys.com/cust/getdocumentByNotesDocId.asp?criteria=PBS_SF130954
For more information please see www.moodys.com.
New York
Amelia (Amy) Tobey
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Gerard Mazi
Senior Associate
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653