Fitch Lowers 2 & Affirms 5 RMBS Classes from ABSC Long Beach HE 2000-LB1.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 taken the following rating actions on Asset-Backed Securities Corporation (ABSC ABSC Association des Bibliothèques de la Santé du Canada (Canadian Health Libraries Association)
ABSC Alaska Biological Science Center
ABSC Albany-Berkeley Soccer Club
ABSC Active Business Software Consultancy ) Long Beach Home Equity Loan Trust mortgage pass-through certificates, series 2000-LB1:
--Class AF5 affirmed at 'AAA';
--Class AF6 affirmed at 'AAA';
--Class M1F affirmed at 'BBB+';
--Class M2F M2F Male to Female (transsexual)
M2F Mail to Fax affirmed at 'CC/DR3';
--Class BF affirmed at 'C/DR6'.
--Class M2V M2V Mpeg 2 Video (file extension) downgraded to 'B' from 'BB+';
--Class BV downgraded to 'C/DR5' from 'CC/DR4'.
The mortgage loans were acquired by ABSC, a wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. of Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , Inc. from Long Beach Mortgage Company. The mortgage loans consist of fixed- and adjustable-rate subprime mortgage loans and are secured by first-lien mortgages on one-to-four-family residential properties. As of the December 2006 distribution date, the transaction is seasoned 76 months, and the pool factors (current mortgage loan principal outstanding as a percentage of the initial pool) for Group 1 and Group 2 are 10% and 5%, respectively. Washington Mutual Bank (rated 'RPS2+' for subprime products by Fitch) is the servicer for all of the mortgage loans.
The affirmations reflect a satisfactory relationship between credit enhancement Credit Enhancement
A method whereby a company attempts to improve its debt or credit worthiness.
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 $37.83 million of outstanding certificates. The negative rating actions on the classes of Group 2, which affect approximately $50.52 million of outstanding certificates, reflect continued deterioration in the relationship between CE and future loss expectations.
Group 1 has maintained little or no overcollateralization (OC) for the last year or more. As a result, monthly losses have resulted in the write-down of the BF bond. With monthly losses net of excess spread averaging $150,000 over the last six months, the BF bond ($462,841) will be fully written down in approximately three months, at which time losses will begin to impact the M2F bond.
Similar to Group 1, Group 2 has maintained little or no OC for the last year or more. As a result, monthly losses have resulted in the write-down of the BV bond. With monthly losses net of excess spread averaging $430,000 over the last six months, the BV bond ($6.74 million) will be fully written down in approximately 16 months, at which time losses will begin to impact the M2V bond.
The performances of the transactions have also been adversely affected by a growing concentration of loans secured with manufactured homes (MH). While the percentage of MH loans in the initial pool balance was relatively modest, the MH loans have made up a disproportionately large percentage of the liquidated loans and, due to relatively slow voluntary prepayments, have become a significant percentage of the remaining pool balance. As of November 2006, the MH concentration (as a percentage of current pool balance) of Group 1 and Group 2 are 14.88% and 19.78%, respectively (originally 5.81% and 8.68%, respectively).
Fitch will closely monitor the relationship between XS and monthly losses. If the losses continue to exceed XS, the ratings will be reassessed. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at www.fitchratings.com.
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