Fitch Affirms 4 & Downgrades 1 RMBS Class From CDC 2003-HE1.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 CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation Mortgage Capital Trust, series 2003-HE1, mortgage pass-through certificates: --Class M-1 affirmed at 'AA'; --Class M-2 affirmed at 'A+'; --Class M-3 affirmed at 'A'; --Class B-1 affirmed at 'BB+'; --Class B-2 downgraded to 'B+' from 'BB-'. The mortgage loans in the aforementioned transaction consist of fixed-rate and adjustable-rate mortgages extended to sub-prime borrowers and are secured by first and second liens, primarily on one- to four-family residential properties. As of the October 2006 distribution date, series 2003-HE1 is 43 months seasoned. The pool factor (current mortgage loan principal outstanding as a percentage of the initial pool) is 9.48%. The affirmations reflect a satisfactory 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 (CE) and future loss expectations and affect approximately $58 million of outstanding certificates, as of the Oct. 25, 2006 distribution date. The negative rating action, affecting approximately $2.3 million of the outstanding certificate, reflects the deterioration of CE relative to expected future losses. As of the October 2006 distribution, series 2003-HE1 has suffered a cumulative loss of 1.44% of its original balance. The overcollateralization (OC) has been beneath its target for the past nine months and is currently only providing 2.86% CE for class B-2. Class B-1 is currently only benefiting from 6.60% CE as protection. The average monthly excess spread over the past three months has been approximately $99,809 and the average monthly losses for the same period have been $271,804. This has led to an average monthly reduction in CE of $171,995 for the past three months. The 60-plus delinquencies represent 25.33% of the current collateral balance and this includes foreclosures 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] ) of 4.46% and 6.95%, respectively. Fitch expects the protection provided by the OC in this transaction to continue to deteriorate. The servicer for this transaction is Ocwen Loan Servicing, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (rated 'RPS2' by Fitch). All of the mortgage loans were purchased by Morgan Stanley ABS Capital I Inc., the depositor, from CDC Mortgage Capital Inc., who previously acquired the mortgage loans from various other originators. Fitch will continue to closely monitor this transaction. Further information regarding current 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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