Moody's Takes Rating Action on Certain RALI Option ARM deals
New York, June 25, 2008 -- Moody's Investors Service has downgraded the ratings of 206 tranches from
30 Option ARM transactions issued by issued by Residential Accredit Loans
Inc. under the QH and QO shelves. Seventy four tranches
remain on review for possible further downgrade. Additionally,
48 tranches were placed on review for possible downgrade
The collateral backing these transactions consists primarily of first-lien,
hybrid and 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: RALI Series 2005-QO1 Trust
Cl. X, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to Aa2 from Aa1
Cl. M-2, Downgraded to A2 from Aa2
Cl. M-3, Downgraded to A3 from Aa3
Cl. M-4, Downgraded to Baa3 from A1
Cl. M-5, Downgraded to Ba2 from A2
Cl. M-6, Downgraded to B1 from A3
Cl. M-7, Downgraded to B2 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to B2 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-9, Downgraded to B3 from Baa3; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Ca from Ba2
Issuer: RALI Series 2005-QO2 Trust
Cl. X, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to A1 from Aa2
Cl. M-2, Downgraded to Ba2 from A2
Cl. M-3, Downgraded to B3 from Baa2
Issuer: RALI Series 2005-QO3 Trust
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 Baa3 from Aa2
Cl. M-2, Downgraded to B2 from A2
Cl. M-3, Downgraded to Ca from Ba2
Issuer: RALI Series 2005-QO4 Trust
Cl. I-A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X-PO, Placed on Review for Possible Downgrade,
currently Aaa
Cl. X-IO, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to Ba1 from Aa2
Cl. M-2, Downgraded to B3 from A2
Cl. M-3, Downgraded to Ca from Ba1
Issuer: RALI Series 2005-QO5 Trust
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 Baa3 from Aa1
Cl. M-2, Downgraded to Ba3 from Aa2
Cl. M-3, Downgraded to B2 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B2 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to B3 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to Caa1 from Baa1; Placed
Under Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Baa2
Cl. M-9, Downgraded to Ca from Baa3
Issuer: RALI Series 2006-QH1 Trust
Cl. M-2, Downgraded to Baa3 from A2
Cl. M-3, Downgraded to Ba3 from Baa1
Cl. M-4, Downgraded to B1 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to B3 from Baa3
Issuer: RALI Series 2006-QO1 Trust
Cl. 1-A-2, Placed on Review for Possible Downgrade,
currently Aaa
Cl. 2-A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. 3-A-3, 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. X-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to Baa3 from Aa1
Cl. M-2, Downgraded to Ba2 from Aa2
Cl. M-3, Downgraded to B2 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B3 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to Ca from Ba1
Cl. M-6, Downgraded to Ca from B2
Cl. B-1, Downgraded to Ca from Caa1
Issuer: RALI Series 2006-QO10 Trust
Cl. M-1, Downgraded to Aa2 from Aaa
Cl. M-2, Downgraded to Baa1 from Aa1
Cl. M-3, Downgraded to Baa3 from Aa2
Cl. M-4, Downgraded to Ba3 from Aa3
Cl. M-5, Downgraded to B1 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B2 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Caa1 from Baa1; Placed
Under Review for further Possible Downgrade
Cl. M-9, Downgraded to Ca from Baa3
Issuer: RALI Series 2006-QO2 Trust
Cl. M-2, Downgraded to A3 from Aa2
Cl. M-3, Downgraded to Baa3 from Aa3
Cl. M-4, Downgraded to Ba3 from A1
Cl. M-5, Downgraded to B2 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B2 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Baa3
Issuer: RALI Series 2006-QO3 Trust
Cl. M-1, Downgraded to Aa2 from Aa1
Cl. M-2, Downgraded to Baa2 from Aa2
Cl. M-3, Downgraded to Ba2 from Aa3
Cl. M-4, Downgraded to B2 from A1
Cl. M-5, Downgraded to B2 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B2 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Baa3
Issuer: RALI Series 2006-QO4 Trust
Cl. M-1, Downgraded to A2 from Aa1
Cl. M-2, Downgraded to Baa3 from Aa2
Cl. M-3, Downgraded to Ba3 from Aa2
Cl. M-4, Downgraded to B2 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to B2 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B3 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Caa1 from Baa1; Placed
Under Review for further Possible Downgrade
Cl. M-9, Downgraded to Ca from Baa2
Cl. M-10, Downgraded to Ca from Ba1
Issuer: RALI Series 2006-QO5 Trust
Cl. I-A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. III-A-5, Placed on Review for Possible
Downgrade, currently Aaa
Cl. XC, Placed on Review for Possible Downgrade, currently
Aaa
Cl. XN, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to Baa1 from Aaa
Cl. M-2, Downgraded to B1 from Aa1
Cl. M-3, Downgraded to B2 from Aa1; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B3 from Aa2; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to Caa1 from Baa2; Placed
Under Review for further Possible Downgrade
Cl. M-6, Downgraded to Ca from Ba2
Cl. M-7, Downgraded to Ca from B3
Issuer: RALI Series 2006-QO6 Trust
Cl. M-1, Downgraded to A3 from Aa1
Cl. M-2, Downgraded to Baa3 from Aa2
Cl. M-3, Downgraded to Ba3 from Aa3
Cl. M-4, Downgraded to B2 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to B2 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B2 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 Ca from Baa3
Issuer: RALI Series 2006-QO7 Trust
Cl. I-A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. III-A-4, Placed on Review for Possible
Downgrade, currently Aaa
Cl. X1, Placed on Review for Possible Downgrade, currently
Aaa
Cl. X2, Placed on Review for Possible Downgrade, currently
Aaa
Cl. X3, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to Baa3 from Aaa
Cl. M-2, Downgraded to B1 from Aa1
Cl. M-3, Downgraded to B2 from Aa2; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to Caa1 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to Ca from Baa3
Cl. M-6, Downgraded to Ca from Ba3
Cl. M-7, Downgraded to Ca from B3
Issuer: RALI Series 2006-QO8 Trust
Cl. I-A1B, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-A, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-A3B, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-A4B, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-AX, Placed on Review for Possible Downgrade,
currently Aaa
Cl. II-AX, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to A2 from Aaa
Cl. M-2, Downgraded to Ba3 from Aa1
Cl. M-3, Downgraded to B2 from Aa1; Placed Under
Review for further Possible Downgrade
Cl. M-4, Downgraded to B3 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to B3 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B3 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to Caa1 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Baa2
Cl. M-9, Downgraded to Ca from Baa3
Issuer: RALI Series 2006-QO9 Trust
Cl. II-A, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-A1B, Placed on Review for Possible Downgrade,
currently Aaa
Cl. I-A3B, Placed on Review for Possible Downgrade,
currently Aaa
Cl. AXP, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to A1 from Aa1
Cl. M-2, Downgraded to A3 from Aa1
Cl. M-3, Downgraded to Baa3 from Aa1
Cl. M-4, Downgraded to Ba3 from Aa2
Cl. M-5, Downgraded to B1 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B2 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B2 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Caa1 from Baa1; Placed
Under Review for further Possible Downgrade
Cl. M-9, Downgraded to Ca from Ba1
Cl. B, Downgraded to Ca from Ba2
Issuer: RALI Series 2007-QH1 Trust
Cl. M-1, Downgraded to Aa2 from Aa1
Cl. M-2, Downgraded to A1 from Aa1
Cl. M-3, Downgraded to Baa1 from Aa2
Cl. M-4, Downgraded to Ba1 from A1
Cl. M-5, Downgraded to B1 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B2 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to Ca from Ba2
Issuer: RALI Series 2007-QH2
Cl. M-1, Downgraded to Aa3 from Aa1
Cl. M-2, Downgraded to A2 from Aa2
Cl. M-3, Downgraded to Baa1 from Aa2
Cl. M-4, Downgraded to Ba1 from Aa3
Cl. M-5, Downgraded to B1 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B1 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to Ca from Baa3
Issuer: RALI Series 2007-QH3 Trust
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to Aa3 from Aa1
Cl. M-2, Downgraded to A2 from Aa1
Cl. M-3, Downgraded to Baa2 from Aa2
Cl. M-4, Downgraded to Ba1 from Aa2
Cl. M-5, Downgraded to B1 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B1 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from A3; 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 Ca from Ba1
Issuer: RALI Series 2007-QH4 Trust
Cl. M-3, Downgraded to Aa3 from Aa2
Cl. M-4, Downgraded to A3 from Aa3
Cl. M-5, Downgraded to Baa3 from A1
Cl. M-6, Downgraded to B1 from A3
Cl. M-7, Downgraded to B1 from Baa3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Ba1
Cl. B, Downgraded to Ca from Ba3
Issuer: RALI Series 2007-QH5 Trust
Cl. A-I-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. A-II, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to A1 from Aa1
Cl. M-2, Downgraded to A3 from Aa1
Cl. M-3, Downgraded to Baa3 from Aa2
Cl. M-4, Downgraded to B1 from Aa3
Cl. M-5, Downgraded to B1 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to Caa1 from Baa3; Placed
Under Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Ba2
Issuer: RALI Series 2007-QH6 Trust
Cl. M-1, Downgraded to Aa2 from Aaa
Cl. M-2, Downgraded to A2 from Aa1
Cl. M-3, Downgraded to Baa1 from Aa1
Cl. M-4, Downgraded to Baa3 from Aa1
Cl. M-5, Downgraded to B1 from Aa3
Cl. M-6, Downgraded to B1 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Ca from Ba3
Cl. B, Downgraded to Ca from B1
Issuer: RALI Series 2007-QH7 Trust
Cl. M-7, Downgraded to Baa2 from A3
Cl. M-8, Downgraded to Ba1 from Baa1
Cl. M-9, Downgraded to B3 from Baa2; Placed Under
Review for further Possible Downgrade
Issuer: RALI Series 2007-QH8 Trust
Cl. X, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Downgraded to Baa1 from Aa2
Cl. M-2, Downgraded to B1 from A2
Cl. M-3, Downgraded to B2 from Baa2; Placed Under
Review for further Possible Downgrade
Cl. B-1, Downgraded to Ca from Ba2
Issuer: RALI Series 2007-QH9 Trust
Cl. X, Placed on Review for Possible Downgrade, currently
Aaa
Cl. M-1, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-2, Placed on Review for Possible Downgrade,
currently A2
Cl. M-3, Placed on Review for Possible Downgrade,
currently Baa2
Cl. B-1, Placed on Review for Possible Downgrade,
currently Ba2
Cl. B-2, Placed on Review for Possible Downgrade,
currently B2
Issuer: RALI Series 2007-QO1 Trust
Cl. M-2, Downgraded to Aa2 from Aa1
Cl. M-3, Downgraded to A1 from Aa1
Cl. M-4, Downgraded to Baa1 from Aa2
Cl. M-5, Downgraded to Baa3 from Aa3
Cl. M-6, Downgraded to Ba3 from A1
Cl. M-7, Downgraded to B1 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to B2 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-9, Downgraded to B3 from Baa3; Placed Under
Review for further Possible Downgrade
Cl. B, Downgraded to Ca from Ba3
Issuer: RALI Series 2007-QO2 Trust
Cl. A-3, Placed on Review for Possible Downgrade,
currently Aaa
Cl. M-1, Downgraded to A2 from Aaa
Cl. M-2, Downgraded to Baa1 from Aa1
Cl. M-3, Downgraded to Ba2 from Aa1
Cl. M-4, Downgraded to B2 from Aa2; Placed Under
Review for further Possible Downgrade
Cl. M-5, Downgraded to B2 from Aa3; Placed Under
Review for further Possible Downgrade
Cl. M-6, Downgraded to B3 from A1; Placed Under
Review for further Possible Downgrade
Cl. M-7, Downgraded to B3 from A3; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to Caa1 from Baa1; Placed
Under Review for further Possible Downgrade
Cl. M-9, Downgraded to Ca from Baa3
Cl. B, Downgraded to Ca from Ba3
Issuer: RALI Series 2007-QO3 Trust
Cl. M-6, Downgraded to Baa1 from A2
Cl. M-7, Downgraded to Baa3 from A3
Cl. M-8, Downgraded to Ba3 from Baa2
Cl. M-9, Downgraded to B3 from Ba1; Placed Under
Review for further Possible Downgrade
Issuer: RALI Series 2007-QO4 Trust
Cl. M-1, Downgraded to Aa2 from Aaa
Cl. M-2, Downgraded to A2 from Aa1
Cl. M-3, Downgraded to A2 from Aa1
Cl. M-4, Downgraded to Baa1 from Aa2
Cl. M-5, Downgraded to Baa3 from Aa3
Cl. M-6, Downgraded to Ba3 from A1
Cl. M-7, Downgraded to B1 from A2; Placed Under
Review for further Possible Downgrade
Cl. M-8, Downgraded to B2 from Baa1; Placed Under
Review for further Possible Downgrade
Cl. M-9, Downgraded to B3 from Baa3; Placed Under
Review for further Possible Downgrade
Issuer: RALI Series 2007-QO5 Trust
Cl. M-1, Downgraded to A2 from Aa2
Cl. M-2, Downgraded to Baa2 from A2
Cl. M-3, Downgraded to Ba1 from Baa1
Cl. M-4, Downgraded to Ba3 from Baa2
Cl. M-5, Downgraded to B1 from Baa3; Placed Under
Review for further Possible Downgrade
A list of these actions including CUSIP identifiers may be found at:
Excel: http://www.moodys.com/cust/getdocumentByNotesDocId.asp?criteria=PBS_SF136241
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