Fitch Affirms 1 & Downgrades 2 From American Residential HELT Series 1998-1.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 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. affirms and downgrades two issues from American Residential HELT HELT Hardware Estimated Life Test series 1998-1 as follows: -- Class M-1 affirmed at 'AA'; -- Class M-2 downgraded to 'BBB' from 'A-'; -- Class B downgraded to 'C' from 'CCC'. The affirmation reflects 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 consistent with future loss expectations and affects $1,898,772 of outstanding certificates. The negative rating action on class M-2 and B relates to concerns regarding the adequacy of credit enhancement in the light of declining collateral performance. The downgrade affects $651,860 of outstanding certificates. Excess spread has not been sufficient to cover losses in recent months, which has resulted in a declining overcollateralization (OC) balance. As of the May 2005 distribution, the OC balance is only $5,771 while the loans in 90 plus delinquency (including bankruptcy, foreclosure, 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 ) total $549,574. Fitch is concerned with the ability of the OC and excess spread to absorb future losses that may result from the delinquent loans. The pool factor (outstanding loan principal as a percentage of the initial loan pool) is currently 2.6%. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies and 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 this site, at all times. This document will remain on the public site for seven days. |
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