S&P Afms Var Beneficial Home Equity Loan Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's Nov. 8, 2002-- Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today affirmed its ratings on nine classes from four series of Beneficial Home Equity Loan certificates (see list). The affirmed ratings reflect actual and projected credit support percentages that adequately support the current ratings, which were maintained by the significant principal prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. , the shifting interest senior subordinate structure, and more than five years of seasoning. In addition, these transactions benefit from overcollateralization (o/c) and excess interest cash flow. 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 to the junior classes is provided by o/c and excess interest only. As of the October 2002 remittance Money sent from one individual to another in the form of cash, check, or some other manner. Financial statements sent by a creditor to a debtor frequently refer to the process of submitting a monthly remittance. REMITTANCE, comm. law. date, series 1996-1, 1996-2, 1997-1, and 1997-2 had approximately 10.57%, 12.53%, 16.05% and 18.26%, of their respective pool balances still outstanding. Total delinquencies ranged from 17.50% for series 1996-1 to 23.14% for series 1996-2. Cumulative realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. ranged from 1.00% for series 1996-1 to 1.58% for series 1997-1. However, monthly excess interest cash flow has consistently outpaced monthly net losses for each of the four transactions. There are no step-down provisions for series 1996-1 and 1996-2. Therefore, the o/c for each significantly exceeds its original target. Series 1997-1 and 1997-2 do have step-down provisions and have been stepping down for about two years. Both transactions are at their respective step-down o/c targets. The collateral backing these transactions are first and second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the adjustable-rate revolving home equity lines of credit, which adjust based on either the prime rate or the three-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . These loans are secured mostly by owner-occupied, one- to four-family residential properties. RATINGS AFFIRMED Beneficial Home Equity Loan Trust Home equity loan asset-backed certs Series Class Rating 1996-1 M AAA 1996-2 A AAA 1996-2 M AAA Beneficial Home Equity Loan Asset-Backed Certificates Home equity loan asset-backed certs Series Class Rating 1997-1 A AAA 1997-1 M AA 1997-1 B A 1997-2 A AAA 1997-2 M AA 1997-2 B A Copyright 2002, Standard & Poor's Ratings Services |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion