Moody's Investors Service Inc. on Friday downgraded $2.2 billion of securities backed by alternative-A mortgages issued in 2005 by Residential Funding Co. LLC, a unit of what is now Ally Financial Inc.

Moody's has downgraded several hundred billion dollars of residential mortgage-backed securities since the start of April as falling home prices, high joblessness and the slow economy led credit raters to revise loss expectations.

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