Fitch Downgrades 2 & Affirms 6 from Bear Stearns Asset Backed Securities Series 1999-1.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 Rating downgrades two and affirms six from the following Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. Asset Backed Security issue, series 1999-1: Series 1999-1 group 1: -- Class AF-5 affirmed at 'AAA'; -- Class AF-6 affirmed at 'AAA'; -- Class MF-1 affirmed at 'AA+'; -- Class MF-2 affirmed at 'A+'; -- Class BF downgraded to 'BB-' from 'BBB-'. Series 1999-1 group 2: -- Class MV-1 affirmed at 'AA+'; -- Class MV-2 affirmed at 'A'; -- Class BV downgraded to 'BB' from 'BBB-'. The affirmations, affecting $24,260,426 of outstanding certificates, 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 (CE) levels consistent with future loss expectations. The negative rating actions on classes BF from group 1 and BV from group 2 are the result of poor collateral performance, losses incurred to date, and future loss expectations in relation to credit support levels. The downgrades affect $2,541,971 outstanding certificates. Series 1999-1 is backed by two collateral loan groups: group 1 (fixed-rate mortgages) and group 2 (adjustable-rate mortgages Adjustable-rate mortgage (ARM) A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or ) originated by Amresco Residential Mortgage Corporation (92.45%) and Provident Funding Provident Fund may refer to:
In group 1, the three-month average loss is approximately $97,000, and excess spread has been insufficient to cover these high losses. This has resulted in the decline of overcollateralization (OC) to $661,617, approximately $163,000 off target. In addition, as of the April 2005 distribution date, 90-plus delinquencies (including bankruptcies, 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 ) stand at 21.44%. The pool factor (outstanding loan principal as a percentage of the initial loan pool) is currently 13%. In group 2, high losses in the month of April 2005 resulted in a decrease in the OC to $851,015, which is below its target of $857,950. In addition, the 90-plus delinquency (including bankruptcies, foreclosures, and real estate owned) stand at 34.88%. The pool factor is currently 6.66%. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion