Irish residential mortgage- backed securities, backed by Start Mortgages subprime loans, were downgraded by Fitch Ratings yesterday, citing rising loan arrears and falling home prices.

The agency cut its ratings on Lansdowne Mortgage Securities 1 and 2 notes. Their loans have “significantly higher” arrears than prime Irish mortgages, it said. The ratings were cut to levels between AA and CCC.

“The downgrades reflect the significant proportion of loans in arrears and the large house price decline that is expected to lead to high loss severities,” Fitch said in the statement. – (Bloomberg)