UPDATE 1-Moody's cuts or may cut over $100 billion of SIV debt

(Adds detail on Citi SIVs affected, background)

NEW YORK, Nov 30 (Reuters) - Moody's Investors Service on Friday said it cut, or may cut, its ratings for over $100 billion worth of securities issued by specialized funds known as structured investment vehicles.

Moody's pointed to continued decline in the value of the investments made by structured investment vehicles, or SIVs, in downgrading or issuing warnings for about $116 billion of their debt.

Nearly $65 billion of securities issued by SIVs sponsored by Citigroup Inc. (C.N), a major player in this market, were downgraded or put on watch for a downgrade, according to Moody's.

"The situation has not yet stabilized and further rating actions could follow," Moody's said in a news release.

The ratings agency said it confirmed, downgraded or placed on review $130 billion of debt from SIVs, or roughly 42 percent of the SIV debt market.

SIVs are bank affiliates that raise cash by selling short-term debt and then buy longer-term and high-yielding securities, often tied to U.S. mortgages.

They have run into trouble this year as investors have shunned any debt linked to risky subprime mortgages. Making things worse, the value of SIVs' investment portfolios have sunk.

Given the continued decline in SIV asset values, Moody's said it is now expanding its review, which is not complete, to include the senior debt of some vehicles.

Citigroup, Bank of America (BAC.N) and JPMorgan Chase (JPM.N) said last month they would set up a fund, dubbed the "SuperSIV," to prevent SIVs from being forced to sell their assets in the absence of short-term financing.

(Reporting by Neil Shah)