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Moody’s To Revise Alt-A RMBS Rating Methodology 

Moody’s Investors Service said late yesterday that it will revise its ratings criteria for Alt-A RMBS, reflecting what it called “collateral weaknesses that have surfaced in Alt-A pools securitized in 2006.” To put this into perspective: similar revisions in the ratings criteria for subprime securities — which many critics say came too late in the cycle — forced massive downgrades of subprime RMBS, driving some pretty significant losses for investors.