Fitch Affirms $427.1MM & Downgrades $76.1MM from 2 Novastar Transactions.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has taken rating actions on the following Novastar mortgage pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size : Novastar 2003-1 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA+'; --Class M-2 affirmed at 'A+'; --Class M-3 downgraded to 'BB' from 'BBB'; Novastar 2004-4 --Class A affirmed at 'AAA'; --Class M-1 affirmed at 'AA+'; --Class M-2 affirmed at 'AA+'; --Class M-3 affirmed at 'AA'; --Class M-4 affirmed at 'AA-'; --Class M-5 affirmed at 'A+'; --Class M-6 affirmed at 'A+'; --Class B-1 affirmed at 'A'; --Class B-2 downgraded to 'BBB+' from 'A-'; --Class B-3 downgraded to 'BBB-' from 'BBB'; --Class B-4 downgraded to 'B' from 'BBB-'. The affirmations, affecting approximately $427.1 million of the outstanding balances, are taken as a result of a satisfactory relationship of credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing to expected losses. The downgrades, affecting approximately $76.1 million of the outstanding balances, are taken as a result of a deteriorating relationship between expected losses and credit enhancement. The collateral of the above transaction consists of fixed and adjustable-rate subprime mortgage loans secured by first and second liens on residential properties. As of the November 2007 distribution date, delinquencies (loans delinquent more than 60 days, inclusive of loans in foreclosure, bankruptcy, and real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (REO reo Noun NZ a language [Maori] )) range from 9.1% (2003-1) to 15.1% (2004-4), with losses to date of 1.33% and 1.39% respectively. The above transactions are seasoned from 36 months (2004-4) to 57 months (2003-1), with pool factors (current mortgage loans outstanding as a percentage of the initial pool) of 16% and 10% respectively. Servicing of the above transactions has recently been sold to Saxon Mortgage Services (rated 'RPS2+' by Fitch). Fitch will closely monitor this transaction. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the 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. web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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