A month after downgrading four tranches of notes issued by the Allco Finance Group vehicle, Mobius NCM-04 Trust, S&P has turned its attention to Mobius NCM-03 Trust and placed the 'BB' and 'B' ratings assigned to the Class D and Class E notes on CreditWatch with negative implications. The ratings assigned to higher classes of notes were affirmed. As with Mobius NCM-04 Trust, there is a high level of arrears and losses in the underlying portfolio and its performance is continuing to deteriorate. Moreover, there are a number of disputed claims on defaulted loans with the mortgage insurance provider, another Allco Finance Group company, The Mortgage Insurance Company Pty Ltd.FitchRatings withdrew its 'BBB-'  rating on Lane Cove Tunnel Finance as a result of information requested by Fitch not being provided. Fitch placed the rating on Rating Watch Negative in mid June and is now of the view that the project's debt will be unable to retain its investment grade characteristics if the planned recapitalisation is delayed or does not proceed.