Fitch Upgrades 15, Affirms 15, and Downgrades 5 from 8 Metropolitan Mortgage Issues.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 rating actions on the following Metropolitan Mortgage & Securities Co., Inc. issues: Series 1997-B -- Class A1D affirmed at 'AAA'; -- Class A2 affirmed at 'AAA'; -- Class B1 upgraded to 'AAA' from 'AA'; -- Class B2 upgraded to 'AAA' from 'BBB'; -- Class B3 upgraded to 'AAA' from 'BB'. Series 1998-A -- Class X affirmed at 'AAA'; -- Class M1 affirmed at 'AAA'; -- Class M2 upgraded to 'AAA' from 'AA'; -- Class B1 affirmed at 'A'. Series 1998-B -- Class X affirmed at 'AAA'; -- Class M-1 affirmed at 'AAA'; -- Class M-2 upgraded to 'AA' from 'A'; -- Class B-1 downgraded to 'CCC' from 'B-'; -- Class B-2 remains at 'C'. Series 1999-A -- Class X affirmed at 'AAA'; -- Class M-1 upgraded to 'AAA' from 'AA'; -- Class M-2 upgraded to 'AA-' from 'A'; -- Class B-1 affirmed at 'B'; -- Class B-2 remains at 'C'. Series 1999-B -- Class M1 affirmed at 'AAA'; -- Class M2 upgraded to 'AA+' from 'AA'; -- Class B1 affirmed at 'A'. Series 1999-C -- Class B1 upgraded to 'AAA' from 'BBB'; -- Class B2 upgraded to 'AA' from 'BB'; -- Class B3 upgraded to 'A' from 'B'. Series 1999-D -- Class M1 affirmed at 'AAA'; -- Class M2 upgraded to 'AA+' from 'AA'; -- Class B1 upgraded to 'AA-' from 'A'; -- Class B2 upgraded to 'BB+' from 'BB'. Series 2000-A -- Classes A-4, A-IO affirmed at 'AAA'; -- Class M-1 downgraded to 'A' from 'AA'; -- Class M-2 downgraded to 'C' from 'CCC'. Series 2000-B -- Classes A1A, A1F affirmed at 'AAA'; -- Class M-1 upgraded to 'AAA' from 'AA'; -- Class M-2 downgraded to 'BBB' from 'A'; -- Class B-1 downgraded to 'C' from 'CCC'. The collateral for the above transactions consists primarily of fixed- and adjustable-rate mortgage 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 loans secured by first liens on residential properties or commercial real estate such as retail, professional, mobile home parks, industrial, mixed-use, restaurant, and tavern tavern: see inn. properties. At origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real , the commercial loans represented approximately 5%-15% of the above trusts. The affirmations reflect adequate relationships of 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) to future loss expectations and affect approximately $66 million of outstanding certificates. The upgrades reflect an improvement in the relationship of CE to future loss expectations and affect approximately $65 million in outstanding certificates. The downgrades reflect deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the relationship of CE to future loss expectations and affect approximately $35.8 million of outstanding certificates. The above transactions, with the exception of series 1997-B, have failed their cumulative loss triggers, which has prevented the trusts from paying principal to the subordinate bonds. This feature allowed CE to build on a percentage basis, benefiting the senior and mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. bonds, despite the deterioration of overcollateralization (OC) on the majority of the trusts. The most subordinate Fitch-rated classes of series 1998-A, 1999-B, and 1999-C were protected from the OC depletion because of a not rated (NR) class that is absorbing losses to the trust. With the exception of 1999-D which currently has 5.94% of enhancement provided by OC, the trusts that do not have the added support of a NR class experienced negative rating actions to the most subordinate classes. The upgrades for series 1997-B are a reflection of the trust's payment structure and increasing credit enhancement. The OC does not have a stepdown feature and has continued to grow as a percentage of the outstanding balance. Currently, the OC is approximately 50% of the current pool balance. Fitch expects the OC to continue to grow as a percentage of the outstanding balance. The majority of the mortgage loans were originated or acquired by Metropolitan Mortgage & Securities Co. Metropolitan filed for Chapter 11 bankruptcy in February 2004. Ocwen Financial Corp., with a Fitch servicer rating of 'RPS2', acquired the servicing rights of the above transactions in April 2001 except for Series 2000-A, which Ocwen is the sub-servicer, and the master servicer is Metwest Mortgage Services, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Metropolitan. Further information regarding current delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. , loss, and credit enhancement statistics is available on the Fitch ratings 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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