Fitch Downgrades 10 & Affirms 20 RMBS Classes from Bombardier MH Securitizations.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. has performed a review of the Bombardier Capital Mortgage Securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. Company (BCMSC) 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 (MH) transactions. Ten classes representing $261 million were downgraded and 20 classes representing $712 million were affirmed. The receivables of these pools consist of fixed rate manufactured housing contracts secured by new and used manufactured homes. The affirmations reflect 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. The downgrade rating actions are a result of the poor performance of the underlying MH collateral (i.e., 11% three month rolling average default rate (approximately 90 basis points above industry average) and a three month rolling average loss severity of 77%). Fitch does not believe that certain classes of certificates have sufficient remaining credit enhancement to maintain their prior ratings. In each transaction, OC and LOCs have been completely exhausted and subordinate classes of certificates are directly being written down as a result of continuing losses. For example, the M-2 classes for 1999-B and 2000-A have been written down to $0 in May 2004 and August 2004, respectively. Following up with the recent Hurricane Charley This article is about the Atlantic hurricane of 2004; for other storms named Hurricane Charley, see Hurricane Charley (disambiguation). Hurricane Charley was the third named storm, the second hurricane, and the second major hurricane of the 2004 Atlantic hurricane season. tragedy in Florida, Fitch contacted the servicer Bombardier Capital, Inc. (BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International ) to determine the hurricane's impact on the 2,500 Bombardier MH properties in the State of Florida. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. BCI, no manufactured housing within its portfolio is reported to have sustained material damage thus far. Fitch will continue to closely monitor this situation. Based on the review, the following rating actions have been taken: Series 1998-A (40% Pool Factor; i.e., percentage of remaining principal balance Remaining principal balance The amount of principal dollars remaining to be paid under a mortgage as of a given time. of the original balance as of the cut-off date): --Classes A-3 - A-5 are affirmed at 'AAA'; --Class M is downgraded to 'A' from 'AA'; --Class B-1 is downgraded to 'C' from 'CCC'; --Class B-2 remains at 'C'. Series 1998-B (46% Pool Factor): --Class A is downgraded to 'A' from 'AA-'; --Class M-1 is downgraded to 'B' from 'BB-'; --Class M-2 is downgraded to 'C' from 'CCC'; --Class B-1 remains at 'C'. Series 1998-C (48% Pool Factor): --Class A is affirmed at 'AA'; --Class M-1 is affirmed at 'BBB-'; --Class M-2 is downgraded to 'B' from 'BB-'; --Class B-1 is downgraded to 'C' from 'CCC'; --Class B-2 remains at 'C'. Series 1999-B (56% Pool Factor): --Classes A-1A & A-1B - A-6 are affirmed at 'B-'; --Class M-1 is downgraded to 'C' from 'CCC'; --Class M-2 remains at 'C'. Series 2000-A (55% Pool Factor): --Classes A-1 - A-5 are affirmed at 'B-'; --Class M-1 is downgraded to 'C' from 'CCC'; --Class M-2 remains at 'C'. Series 2001-A (59% Pool Factor): --Class A is affirmed at 'AA-'; --Class M-1 is affirmed at 'BBB'; --Class M-2 is affirmed at 'B-'; --Class B-1 is downgraded to 'C' from 'CCC'; --Class B-2 remains at 'C'. |
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