Fitch Ratings Affirms 4 RMBS Classes from 3 Signal MH Transactions.Business Editors NEW YORK--(BUSINESS WIRE)--April 21, 2004 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 Signal 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. Corporation 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. Based on the review, the following rating actions have been taken: Signal Securitization Corp, series 1997-3 -- Class A 'AA'; -- Class B 'BB'. Signal Securitization Corp, series 1998-1 -- Class A 'A'. Signal Securitization Corp, series 1998-2 -- Class A 'A'. The transactions reviewed pay principal due to senior bonds prior to paying interest due to subordinate bonds. Higher than expected losses have caused significant interest shortfalls to various subordinate bonds in the transactions. While the structures allow for interest shortfalls to be recovered in the future in the event of sufficient excess spread, Fitch fitch: see polecat. assessed the likelihood of the bondholder Bondholder A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. bondholder An individual or institution that owns bonds in a corporation or other organization. receiving all interest due when determining the bond's credit rating. |
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