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Rating Action:

Moody's Takes Action on $381 Million of US Alt-A RMBS issued by miscellaneous issuers

11 Mar 2013

New York, March 11, 2013 -- Moody's Investors Service has downgraded the ratings of 23 tranches and affirmed the ratings of 30 tranches from six RMBS transactions, backed by Alt-A loans, issued by miscellaneous issuers.

RATINGS RATIONALE

The actions are a result of the recent performance of Alt-A pools originated before 2005 and reflect Moody's updated loss expectations on these pools.

The methodologies used in these ratings were "Moody's Approach to Rating US Residential Mortgage-Backed Securities" published in December 2008, and "Pre-2005 US RMBS Surveillance Methodology" published in January 2012. The methodology used in rating Interest-Only Securities is "Moody's Approach to Rating Structured Finance Interest-Only Securities" published in February 2012. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

Moody's adjusts the methodologies noted above for 1) Moody's current view on loan modifications 2) small pool volatility.

Loan Modifications

As a result of an extension of the Home Affordable Modification Program (HAMP) and an increased use of private modifications, Moody's is extending its previous view that loan modifications will only occur through the end of 2012. It is now assuming that the loan modifications will continue at current levels until 2014.

Small Pool Volatility

The above RMBS approach only applies to structures with at least 40 loans and a pool factor of greater than 5%. Moody's can withdraw its rating when the pool factor drops below 5% and the number of loans in the deal declines to 40 loans or lower. If, however, a transaction has a specific structural feature, such as a credit enhancement floor, that mitigates the risks of small pool size, Moody's can choose to continue to rate the transaction. Please refer further to Moody's Investors Service's Withdrawal Policy, which can be found on our website, www.moodys.com.

For pools with loans less than 100, Moody's adjusts its projections of loss to account for the higher loss volatility of such pools. For small pools, a few loans becoming delinquent would greatly increase the pools' delinquency rate.

To project losses on Alt-A pools with fewer than 100 loans, Moody's first calculates an annualized delinquency rate based on vintage, number of loans remaining in the pool and the level of current delinquencies in the pool. For Alt-A and Option Arm pools, Moody's first applies a baseline delinquency rate of 10% for 2004, 5% for 2003 and 3% for 2002 and prior. Once the loan count in a pool falls below 76, this rate of delinquency is increased by 1% for every loan fewer than 76. For example, for a 2004 pool with 75 loans, the adjusted rate of new delinquency is 10.1%. Further, to account for the actual rate of delinquencies in a small pool, Moody's multiplies the rate calculated above by a factor ranging from 0.50 to 2.0 for current delinquencies that range from less than 2.5% to greater than 30% respectively. Moody's then uses this final adjusted rate of new delinquency to project delinquencies and losses for the remaining life of the pool under the approach described in the methodology publication.

The primary source of assumption uncertainty is the uncertainty in our central macroeconomic forecast and performance volatility due to servicer-related issues. The unemployment rate fell from 9.0% in September 2011 to 7.9% in January 2013. Moody's forecasts a further drop to 7.5% by 2014. Moody's expects house prices to drop another 1% from their 4Q2011 levels before gradually rising towards the end of 2013. Performance of RMBS continues to remain highly dependent on servicer procedures. Any change resulting from servicing transfers or other policy or regulatory change can impact the performance of these transactions.

Complete rating actions are as follows:

Issuer: Banc of America Alternative Loan Trust 2003-10

Cl. 5-A-1, Downgraded to Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa1 (sf)

Cl. 5-A-2, Affirmed Ba3 (sf); previously on Apr 13, 2012 Downgraded to Ba3 (sf)

Cl. 6-A-1, Downgraded to Ba3 (sf); previously on Apr 13, 2012 Downgraded to Ba1 (sf)

Cl. 6-A-2, Downgraded to Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa1 (sf)

Cl. 6-A-3, Downgraded to Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa1 (sf)

Cl. PO, Affirmed Ba2 (sf); previously on Apr 13, 2012 Downgraded to Ba2 (sf)

Cl. 15-B-2, Affirmed C (sf); previously on Mar 15, 2011 Downgraded to C (sf)

Cl. 15-B-3, Affirmed C (sf); previously on Mar 15, 2011 Downgraded to C (sf)

Cl. 15-IO, Affirmed Ba3 (sf); previously on Apr 13, 2012 Confirmed at Ba3 (sf)

Issuer: Banc of America Alternative Loan Trust 2003-11

Cl. 1-A-1, Affirmed Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa3 (sf)

Cl. 2-A-1, Downgraded to Baa2 (sf); previously on Mar 15, 2011 Downgraded to A2 (sf)

Cl. 3-A-1, Affirmed Ba1 (sf); previously on Apr 13, 2012 Downgraded to Ba1 (sf)

Cl. CB-IO, Affirmed Ba3 (sf); previously on Apr 13, 2012 Confirmed at Ba3 (sf)

Cl. PO, Affirmed Ba2 (sf); previously on Apr 13, 2012 Downgraded to Ba2 (sf)

Cl. 30-B-3, Affirmed C (sf); previously on Mar 15, 2011 Downgraded to C (sf)

Cl. 3-IO, Affirmed Caa1 (sf); previously on Apr 13, 2012 Downgraded to Caa1 (sf)

Issuer: Banc of America Alternative Loan Trust 2003-4

Cl. 1-A-1, Downgraded to Baa2 (sf); previously on Apr 13, 2012 Downgraded to A3 (sf)

Cl. 1-A-2, Downgraded to Baa2 (sf); previously on Apr 13, 2012 Downgraded to A3 (sf)

Cl. 1-A-3, Downgraded to Baa2 (sf); previously on Apr 13, 2012 Downgraded to A3 (sf)

Cl. 1-A-4, Downgraded to Baa2 (sf); previously on Apr 13, 2012 Downgraded to A3 (sf)

Cl. 1-A-5, Downgraded to Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa1 (sf)

Cl. 1-A-6, Downgraded to Baa2 (sf); previously on Apr 13, 2012 Downgraded to A3 (sf)

Cl. 1-A-WIO, Affirmed Ba3 (sf); previously on Apr 13, 2012 Confirmed at Ba3 (sf)

Cl. A-PO, Affirmed Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa3 (sf)

Issuer: Banc of America Alternative Loan Trust 2003-9

Cl. 1-CB-1, Downgraded to Baa2 (sf); previously on Mar 15, 2011 Downgraded to Baa1 (sf)

Cl. 1-CB-2, Affirmed A3 (sf); previously on Mar 15, 2011 Downgraded to A3 (sf)

Cl. 1-CB-3, Affirmed Baa2 (sf); previously on Mar 15, 2011 Downgraded to Baa2 (sf)

Cl. 1-CB-4, Downgraded to Baa2 (sf); previously on Mar 15, 2011 Downgraded to Baa1 (sf)

Cl. 1-CB-5, Downgraded to Ba1 (sf); previously on Mar 15, 2011 Downgraded to Baa2 (sf)

Cl. 1-CB-WIO, Affirmed Ba3 (sf); previously on Apr 13, 2012 Confirmed at Ba3 (sf)

Cl. 2-NC-1, Affirmed Baa1 (sf); previously on Mar 15, 2011 Downgraded to Baa1 (sf)

Cl. PO, Affirmed Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa3 (sf)

Cl. 2-NC-2, Affirmed Ba1 (sf); previously on Apr 13, 2012 Downgraded to Ba1 (sf)

Cl. 2-NC-WIO, Affirmed B1 (sf); previously on Apr 13, 2012 Downgraded to B1 (sf)

Cl. 3-A-1, Downgraded to Baa3 (sf); previously on Apr 13, 2012 Downgraded to Baa1 (sf)

Cl. 3-A-2, Affirmed Ba3 (sf); previously on Apr 13, 2012 Downgraded to Ba3 (sf)

Cl. 3-A-WIO, Affirmed Ba3 (sf); previously on Apr 13, 2012 Confirmed at Ba3 (sf)

Issuer: Bear Stearns ARM Trust 2004-10

Cl. II-1-A-1, Downgraded to B1 (sf); previously on May 13, 2011 Downgraded to Ba3 (sf)

Cl. II-2-A-1, Downgraded to B2 (sf); previously on May 13, 2011 Downgraded to Ba3 (sf)

Cl. II-3-A-1, Downgraded to B1 (sf); previously on May 13, 2011 Downgraded to Ba3 (sf)

Cl. II-B-1, Downgraded to C (sf); previously on May 13, 2011 Downgraded to Ca (sf)

Cl. II-B-3, Affirmed C (sf); previously on May 13, 2011 Downgraded to C (sf)

Cl. II-B-2, Affirmed C (sf); previously on May 13, 2011 Downgraded to C (sf)

Issuer: MASTR Alternative Loan Trust 2003-1

Cl. 1-A-1, Downgraded to Baa1 (sf); previously on Apr 26, 2012 Downgraded to Aa3 (sf)

Cl. B-1, Downgraded to Ba3 (sf); previously on Apr 26, 2012 Downgraded to Baa3 (sf)

Cl. B-2, Downgraded to Caa3 (sf); previously on Apr 26, 2012 Downgraded to Caa1 (sf)

Cl. B-3, Affirmed Ca (sf); previously on Apr 26, 2012 Downgraded to Ca (sf)

Cl. 2-A-1, Downgraded to Baa1 (sf); previously on Apr 26, 2012 Downgraded to A1 (sf)

Cl. 3-A-1, Affirmed Aa2 (sf); previously on Apr 26, 2012 Downgraded to Aa2 (sf)

Cl. 4-A-1, Affirmed Aa2 (sf); previously on Apr 26, 2012 Downgraded to Aa2 (sf)

Cl. A-X-2, Affirmed Ba3 (sf); previously on Apr 26, 2012 Confirmed at Ba3 (sf)

Cl. A-X-1, Affirmed B1 (sf); previously on Apr 26, 2012 Downgraded to B1 (sf)

Cl. PO-1, Affirmed A1 (sf); previously on Apr 26, 2012 Downgraded to A1 (sf)

A list of these actions including CUSIP identifiers may be found at:

Excel: http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF319636

A list of updated estimated pool losses, sensitivity analysis, and tranche recovery details is being posted on an ongoing basis for the duration of this review period and may be found at:

Excel: http://v3.moodys.com/viewresearchdoc.aspx?docid=PBS_SF237256

For more information please see www.moodys.com.

REGULATORY DISCLOSURES

Moody's received and took into account one or more third party assessments on the due diligence performed regarding the underlying assets or financial instruments in these transactions and the assessments had a neutral impact on the rating.

In conducting surveillance of these credits, Moody's considered performance data contained in servicer and remittance reports. Moody's obtains servicer reports on these transactions on a periodic basis, at least annually.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Jiwon Park
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Deepika Kothari
Vice President - Senior Analyst
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Takes Action on $381 Million of US Alt-A RMBS issued by miscellaneous issuers
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