Moody's takes action on First Franklin mortgage deals from 2002, 2003, and 2004
New York, February 13, 2008 -- Moody's Investors Service has downgraded 35 certificates and placed on
review for downgrade 9 certificates from seven deals issued by First Franklin
Mortgage Loan Trust.
The actions are based on the analysis of credit enhancement provided by
subordination, overcollateralization (OC) and excess spread relative
to expected losses. The transactions have pool factors ranging
between 5% and 24% and are backed by first-lien fixed
and adjustable rate subprime mortgage loans. With the exception
of 2002-FF3 and 2003-FF5, the collateral pools also
consist of high LTV mortgage loans.
The actions are driven by complete erosion of OC (or near complete erosion
in the case of 2002-FF3), leaving some of the more subordinate
certificates exposed to future losses and many of the tranches sequentially
above them in a weaker position.
The complete rating actions are as follows:
Issuer: First Franklin Mortgage Loan Trust 2002-FF3
Cl. M1, Placed on Review for Possible Downgrade, currently
Aa2
Cl. M2, Downgraded to B3 from Baa3
Cl. M3, Downgraded to Ca from B1
Issuer: First Franklin Mortgage Loan Trust 2003-FF5
Cl. M-1, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-2, Downgraded to Baa3 from A2
Cl. M-3, Downgraded to Ba3 from A3
Cl. M-4, Downgraded to Caa2 from Baa1
Cl. M-5, Downgraded to Ca from Ba3
Cl. M-6, Downgraded to C from B2
Issuer: First Franklin Mortgage Loan Trust 2003-FFH1
Cl. M-1, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-2, Downgraded to B3 from A2
Cl. M-3, Downgraded to Ca from Baa2
Cl. M-4, Downgraded to C from B2
Cl. M-5, Downgraded to C from Caa3
Issuer: First Franklin Mortgage Loan Trust 2003-FFH2
Cl. M-1A, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-1B, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-2, Downgraded to B3 from Baa1
Cl. M-3, Downgraded to Ca from Ba2
Cl. M-4, Downgraded to C from Caa1
Cl. M-5, Downgraded to C from Ca
Issuer: First Franklin Mortgage Loan Trust 2004-FFH2
Cl. M-2, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-3, Placed on Review for Possible Downgrade,
currently Aa3
Cl. M-4, Downgraded to Baa1 from A1
Cl. M-5, Downgraded to Baa3 from A2
Cl. M-6, Downgraded to Ba3 from A3
Cl. M-7, Downgraded to B3 from Baa3
Cl. M-8, Downgraded to Ca from Ba2
Cl. M-9, Downgraded to C from Caa1
Cl. B-1, Downgraded to C from Ca
Issuer: First Franklin Mortgage Loan Trust 2004-FFH3
Cl. M-2, Placed on Review for Possible Downgrade,
currently Aa2
Cl. M-3, Placed on Review for Possible Downgrade,
currently Aa3
Cl. M-4, Downgraded to Baa2 from A1
Cl. M-5, Downgraded to Baa3 from A2
Cl. M-6, Downgraded to Ba3 from A3
Cl. M-7, Downgraded to B2 from Baa3
Cl. M-8, Downgraded to Caa1 from Ba2
Cl. M-9, Downgraded to Ca from B3
Cl. B-1, Downgraded to C from Caa1
Cl. B-2, Downgraded to C from Caa3
Issuer: First Franklin Mortgage Loan Trust 2004-FFH4
Cl. M-9, Downgraded to B3 from Ba3
Cl. M-10, Downgraded to Ca from B2
Cl. M-11, Downgraded to C from B3
Cl. B-1, Downgraded to C from Caa1
Cl. B-2, Downgraded to C from Caa3
Additional research is available on http://www.moodys.com
New York
Navneet Agarwal
Vice President - Senior Analyst
Asset Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Karen Ramallo
Analyst
Asset Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653