Moody's Downgrades $4.5 Billion Of Bonds With FHA, VA Mortgages

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DOW JONES NEWSWIRES

Moody's Investors Service cut ratings on $4.5 billion of bonds made up of mortgages guaranteed by the Federal Housing Administration and Veterans Administration from 2002 to 2007 because of climbing losses.

The credit rater said loss levels are likely to increase further as home prices continue to decline and foreclosures keep rising.

Downgraded were $1.9 billion of deals done through Countrywide Financial, $2 billion through what is called the GSMPS Mortgage Loan Trust and $631 million through the Mastr Mortgage Loan Trust.

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