Mortgage-backed securities are expected to be further downgraded, adding to the woes of the financial market. Rating agencies are facing increased scrutiny and are under pressure to re-evaluate the risk associated with these securities. The anticipated downgrades are a response to rising default rates and declining home values.

The impact of these downgrades could be significant, potentially leading to:

• Further losses for investors holding these securities.
• Increased borrowing costs for homeowners.
• A deeper credit crunch, making it more difficult for businesses and individuals to access loans.

Analysts are closely monitoring the situation, and further government intervention may be required to stabilize the market.

The downgrades reflect a growing concern about the overall health of the housing market and the broader economy.