Bombardier Capital Manufactured Hsg Contracts Downgraded By Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--May 8, 2002 Bombardier Capital Manufactured Housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected Contracts, series 1999-B, class B-2 is lowered to 'CCC' from 'BB' and series 2000-A, class B-2 is lowered to 'B' from 'BB', with both classes being placed on Rating Watch Negative by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Additionally, class B-1 of the 1999-B transaction is lowered to 'BBB-' from 'BBB' and placed on Rating Watch Negative. The actions reflect the poor performance of the underlying manufactured housing loans in the transactions. Higher than expected losses have resulted in reduction of the amount of overcollateralization Overcollateralization The posting of more collateral than is needed to obtain financing. Notes: This is often done in order to get a better debt rating from a credit rating agency. See also: Collateral, Overcapitalization (o/c). As of the distribution date on April 15, 2002, the overcollateralization amount for series 1999-B and 2000-A is equal to $1,814,921 (0.48%) and $7,270,282 (2.10%), respectively. The original o/c target for series 1999-B and 2000-A is equal to $24,563,064 (5.25%) and $15,598,878 (3.74%), respectively. Although the company exited the manufactured housing lending business in September 2001, it continues to service its approximately $1.8 Billion manufactured housing loan portfolio. The departure form the lending business has had an adverse impact on already deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: performance. As a result of exiting the manufactured housing lending business the company is now heavily reliant upon wholesale liquidations of repossessed homes. Recovery rates on wholesale liquidations are generally substantially lower than retail liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy recoveries. Cumulative losses to date are 7.69% and 7.09% for series 1999-B and 2000-A, respectively. Fitch fitch: see polecat. will continue to monitor the performance of the collateral pools backing the securities as well as the status of the servicing platform. |
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