Fitch Affirms 1 Class & Downgrades 3 Classes from 1 GSRPM Mortgage Loan Trust Securitization.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 takes the following rating actions one GSRPM Mortgage Trust issue: Series 2002-1: -- Class A is affirmed at 'AAA'; -- Class M-1 downgraded to 'AA-' from 'AA'; -- Class M-2 is downgraded to 'BBB' from 'A'; -- Class B is downgraded to 'BB-' from 'BBB'. The affirmation of the class A reflects a stable relationship between 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 and future loss expectations and the guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. of payment by Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. . The affirmation affects approximately $58.3 million of outstanding certificates. The negative rating actions on classes M-1, M-2, and B, which are $34 million of outstanding certificates, reflect deterioration in the relationship between credit enhancement and future loss expectations. While Fitch feels there is no material risk of a principal writedown of the M-1 and M-2 classes under the expected-case scenario, neither class is currently able to satisfactorily sustain the projected stressed-case scenarios required to maintain their respective initial ratings. Although the bonds have benefited from significantly more excess spread to date than initially expected due to a favorable interest rate environment, losses on the collateral to date have been higher than initially expected. As of the August 2005 distribution, the cumulative loss was 6.75%. In recent months, net losses have exceeded available excess spread, which has prevented the overcollateralization from remaining at its target. The mortgage pool consists of reperforming loans, which at some point prior to closing may have been delinquent. At closing, a portion of the pool was delinquent and some mortgage loan documents required to be delivered to the servicers were missing or incomplete. The mortgage loans were acquired from EquiCredit, KeyBank, Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. , US Bank, and other sellers. The loans are collectively serviced by Countrywide Home Loans, Inc., Wells Fargo, and Select Portfolio Servicing. Countrywide and Wells Fargo are rated 'RPS1' and Select is rated 'RPS2-' by Fitch as primary servicers. 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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