Moody’s Investors Service took action $870m second lien residential mortgage-backed securities (RMBS). Moody’s downgraded the ratings of 33 tranches and confirmed the rating of a single tranche from 14 RMBS deals issued by Structured Asset Securities Corp., once a subsidiary of now defunct Lehman Brothers Holdings. Closed-end second liens primarily collateralize the deals, which were issued by the entity between 2003 and 2006. Moody’s took the ratings actions amid continued deterioration in the performance of second lien pools in conjunction with distressed house prices and employment conditions. The rating agency expects losses to continue to adjust in these pools as house prices and employment stabilize. Expected losses, as a percentage of the original balance, now range from 1% to 75%, depending on the vintage and the collateral. Write to Diana Golobay.