Four classes of mortgage securities backed by subprime loans originated by Quality Mortgage USA have been downgraded.

Duff & Phelps Credit Rating Co. said, "Rising delinquencies, foreclosures, and REO properties have severely impacted on the credit quality of each respective pool."

The securities were issued by DLJ Mortgage Acceptance Corp. DLJ is a 49% owner of Quality, but the originator is being sold to Amresco Inc., another large securitizer of subprime loans.

The four classes continue on rating watch for possible further downgrades, and two additional classes have also been put on watch.

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