Bonds News

UPDATE 1-Moody's may cut Bear Stearns, IndyMac ABS

(Updates with action on IndyMac and Nomura)

NEW YORK, July 17 (Reuters) - Moody's Investors Service on Tuesday said it may cut its ratings on some asset-backed securities sold by Bear Stearns Cos. BSC.N and IndyMac Bancorp Inc. IMB.N in 2006, citing higher-than-expected delinquencies in the loans backing the deals.

The collateral backing the securities under review consists of primarily first lien, fixed and adjustable-rate and Alt-A mortgage loans, Moody’s said in a statement.

Moody’s is reviewing 13 pieces of 8 deals sold from the Bear Stearns Alt-A Trust Series and Bear Stearns Asset Backed Securities I Trust Series, all of which are backed by loans issued in 2006.

The ratings on the deals currently range from “Baa3,” the lowest investment grade ranking, to “Ba2,” two levels below investment grade.

Moody’s is also reviewing two pieces from two deals sold by IndyMac INDX Mortgage Loan Trust, which are currently rated “Ba2,” and are also backed by loans issued in 2006.

IndyMac is a mortgage specialist and one of Southern California’s largest savings and loans institutions.

In addition, Moody’s also said it may cut the ratings of eight tranches from three deals issued by Nomura Asset Acceptance Corporation in 2006. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans. (To see the Moody’s statements on Bear Stearns, IndyMac and Nomura, click on [ID:nWNA3536] [ID:nWNA3537] [ID:nWNA3543]