Moody's Takes Rating Action on Certain DSLA Option ARM deals
New York, June 19, 2008 -- Moody's Investors Service has downgraded the ratings of 45 tranches from
12 Option ARM transactions backed by Downey Savings and Loan Association
originated loans. Twelve tranches remain on review for possible
further downgrade. Additionally, 14 tranches were placed
on review for possible downgrade.
The collateral backing these transactions consists primarily of first-lien,
adjustable-rate, negatively amortizing Alt-A mortgage
loans. The 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: DSLA Mortgage Loan Trust 2004-AR1
Cl. B-2, Downgraded to A3 from A2
Cl. B-3, Downgraded to Ba1 from Baa2
Cl. B-4, Downgraded to B3 from Ba2
Issuer: DSLA Mortgage Loan Trust 2004-AR2
Cl. B-1, Downgraded to A1 from Aa2
Cl. B-2, Downgraded to Baa3 from A2
Cl. B-3, Downgraded to B3 from Baa2
Cl. B-4, Downgraded to Ca from Ba2
Issuer: DSLA Mortgage Loan Trust 2004-AR4
Cl. B-1, Downgraded to A3 from Aa2
Cl. B-2, Downgraded to Ba2 from A2
Cl. B-3, Downgraded to Caa1 from Baa2
Cl. B-4, Downgraded to Ca from Ba2
Issuer: DSLA Mortgage Loan Trust 2005-AR1
Cl. X-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. B-1, Downgraded to A2 from Aa2
Cl. B-2, Downgraded to Ba1 from A2
Cl. B-3, Downgraded to B3 from Baa2
Issuer: DSLA Mortgage Loan Trust 2005-AR2
Cl. 2 A1B, Placed on Review for Possible Downgrade,
currently Aaa
Cl. PO, Placed on Review for Possible Downgrade, currently
Aaa
Cl. X-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. 2-A2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. B-1, Downgraded to Baa1 from Aa2
Cl. B-2, Downgraded to B1 from A2
Cl. B-3, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Issuer: DSLA Mortgage Loan Trust 2005-AR3
Cl. PO, Placed on Review for Possible Downgrade, currently
Aaa
Cl. X-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. 2-A2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. 2-A1C, Placed on Review for Possible Downgrade,
currently Aaa
Issuer: DSLA Mortgage Loan Trust 2005-AR5
Cl. PO, Placed on Review for Possible Downgrade, currently
Aaa
Cl. X-1, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. B-1, Downgraded to Baa2 from Aa2
Cl. B-2, Downgraded to B3 from A2
Cl. B-3, Downgraded to Caa1 from Baa2; Placed
Under Review for further Possible Downgrade
Cl. B-4, Downgraded to Caa1 from Baa3; Placed
Under Review for further Possible Downgrade
Issuer: DSLA Mortgage Loan Trust 2005-AR6
Cl. M-1, Downgraded to Baa1 from Aa2
Cl. M-2, Downgraded to B3 from A2
Cl. M-3, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to Caa1 from Baa3; Placed
Under Review for further Possible Downgrade
Cl. M-5, Downgraded to Ca from Ba1
Cl. M-6, Downgraded to Ca from Ba2
Issuer: DSLA Mortgage Loan Trust 2006-AR1
Cl. M-2, Downgraded to Aa3 from Aa2
Cl. M-3, Downgraded to Baa1 from Aa3
Cl. M-4, Downgraded to Ba2 from A1
Cl. M-5, Downgraded to B3 from A2
Cl. M-6, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Caa1 from Baa2; Placed
Under Review for further Possible Downgrade
Cl. M-9, Downgraded to Caa1 from Baa3; Placed
Under Review for further Possible Downgrade
Cl. M-10, Downgraded to Ca from Ba1
Issuer: DSLA Mortgage Loan Trust 2006-AR2
Cl. M-2, Downgraded to Aa3 from Aa2
Cl. M-3, Downgraded to A3 from Aa3
Cl. M-4, Downgraded to Baa3 from A1
Cl. M-5, Downgraded to Ba3 from A3
Cl. M-6, Downgraded to B2 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B2 from Baa2; Placed Under
Review for further Possible Downgrade
Issuer: DSLA Mortgage Loan Trust 2007-AR1
Cl. M-7, Downgraded to Baa1 from A2
Cl. M-8, Downgraded to Ba1 from A3
Cl. M-9, Downgraded to B1 from Baa3; Placed Under
Review for further Possible Downgrade
Excel file: http://www.moodys.com/cust/getdocumentByNotesDocId.asp?criteria=PBS_SF135797
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
Amita Shrivastava
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653