Moody's Takes Action on WMC backed certificates
New York, November 14, 2007 -- Moody's Investors Service upgraded 17 certificates, confirmed the
ratings on 6 certificates, and downgraded 23 certificates backed
by WMC subprime fixed and adjustable rate mortgage loans. The actions
are based on the analysis of the credit enhancement provided by subordination,
overcollateralization and excess spread relative to the expected loss.
The certificates were issued in 2004 except for MASTR Asset Backed Securities
Trust 2003-WMC2. In the majority of these deals, losses
have already begun to erode the overcollateralization, leaving the
bottom rated bonds less protected. The certificates being upgraded
show a strong build-up of credit enhancement.
Complete rating actions are as follows:
Issuer: Asset Backed Securities Corporation Home Equity Loan Trust
2004-HE9
Cl. M5, downgraded to Ba2, previously Baa2,
Cl. M6, downgraded to B3, previously Baa3,
Cl. M7, downgraded to Caa2, previously Ba1,
Issuer: MASTR Asset Backed Securities Trust 2003-WMC2
Cl. M-5, downgraded to Ba2, previously Baa2,
Cl. M-6, downgraded to B3, previously Baa3,
Issuer: MASTR Asset Backed Securities Trust 2004-WMC1
Cl. M-1, confirmed Aa2,
Cl. M-2, confirmed A2,
Cl. M-3, confirmed A3,
Cl. M-5, downgraded to Ba2, previously Baa2,
Cl. M-6, downgraded to B3, previously Baa3,
Cl. M-7, downgraded to Caa3, previously Ba1,
Issuer: MASTR Asset Backed Securities Trust 2004-WMC2
Cl. M-1, upgraded to Aa1, previously Aa2,
Cl. M-2, upgraded to A1, previously A2,
Cl. M-6, downgraded to B1, previously Baa3,
Cl. M-7, downgraded to Caa1, previously Ba1,
Issuer: Merrill Lynch Mortgage Investors, Inc. 2004-WMC1
Cl. M-2, confirmed A2,
Cl. B-2, downgraded to Ba3, previously Baa2,
Cl. B-3, downgraded to B3, previously Baa3,
Cl. B-4, downgraded to Caa3, previously Ba2,
Issuer: Merrill Lynch Mortgage Investors, Inc. 2004-WMC2
Cl. M-1, upgraded to Aa1, previously Aa2,
Cl. M-2, upgraded to A1, previously A2,
Cl. B-3, downgraded to Ba3, previously Baa3,
Issuer: Merrill Lynch Mortgage Investors, Inc. 2004-WMC3
Cl. M-2, upgraded to A1, previously A2,
Cl. B-3, downgraded to Ba2, previously Baa3,
Cl. B-4, downgraded to Ba3, previously Ba1,
Issuer: Merrill Lynch Mortgage Investors, Inc. 2004-WMC4
Cl. M-2, upgraded to Aa3, previously A2,
Cl. M-3, upgraded to A1, previously A3,
Issuer: Merrill Lynch Mortgage Investors, Inc. 2004-WMC5
Cl. M-1, upgraded to Aaa, previously Aa1,
Cl. M-2, upgraded to Aa1, previously Aa2,
Cl. M-3, upgraded to Aa2, previously Aa3,
Cl. M-4, upgraded to Aa3, previously A1,
Cl. M-5, upgraded to A1, previously A2,
Cl. M-6, upgraded to A2, previously A3,
Issuer: Morgan Stanley ABS Capital I Inc. Trust 2004-WMC1
Cl. M-1, upgraded to Aa1, previously Aa2,
Cl. M-2, upgraded to A1, previously A2,
Cl. B-3, downgraded to Ba3, previously Baa3,
Issuer: Morgan Stanley ABS Capital I Inc. Trust 2004-WMC2
Cl. M-1, upgraded to Aa1, previously Aa2,
Cl. M-2, upgraded to A1, previously A2,
Cl. B-2, confirmed Baa2,
Cl. B-3, downgraded to Ba2, previously Baa3,
Issuer: Morgan Stanley ABS Capital I Inc. Trust 2004-WMC3
Cl. M-6, downgraded to Baa2, previously A3,
Cl. B-1, downgraded to Ba1, previously Baa1,
Cl. B-2, downgraded to Ba3, previously Baa2,
Cl. B-3, downgraded to B3, previously Baa3,
Issuer: Soundview Home Loan Trust 2004-WMC1
Cl. M-1, confirmed Aa1,
Cl. M-10, downgraded to Ba3, previously Ba1.
For more information see www.Moodys.com
New York
Nicolas S. Weill
Managing Director - Chief Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Ola Hannoun-Costa
Senior Associate
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653