Citing rising concerns over subprime auto lending in the wake of the Mercury financial scandal, Moody's Investors Service lowered the ratings on Olympic Financial Ltd. senior notes to B2 from B1 and its subordinated notes to B3 from B2.

The Minneapolis auto lender, which relies almost entirely on the asset- backed securities market to fund itself, has been a target of selling by investors nervous about the implications of the unexpected restatement of earnings by Mercury, a subprime auto lender.

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