Moody's takes action on $146 Million of Alt-A RMBS issued in 2005.
New York: Moody's Investors Service has upgraded the ratings of eight tranches and downgraded the rating of one tranche from two transactions, backed by Alt-A RMBS loans, issued by CSFB and Greenpoint.
Complete rating actions are as follows:
Issuer: CSFB Adjustable Rate Mortgage Trust 2005-8
Cl. 4-A-1-1, Downgraded to Caa2 (sf); previously on May 4, 2010 Downgraded to Caa1 (sf)
Cl. 7-A-1-1, Upgraded to B3 (sf); previously on May 4, 2010 Downgraded to Caa3 (sf)
Cl. 7-A-1-2, Upgraded to Caa2 (sf); previously on May 4, 2010 Downgraded to Ca (sf)
Cl. 7-A-2, Upgraded to Ba2 (sf); previously on Mar 31, 2015 Upgraded to B2 (sf)
Cl. 7-A-3-2, Upgraded to Ba2 (sf); previously on Mar 31, 2015 Upgraded to B2 (sf)
Cl. 7-A-4, Upgraded to Caa2 (sf); previously on May 4, 2010 Downgraded to Ca (sf)
Issuer: Greenpoint Mortgage Funding Trust 2005-HY1
Cl. 1-A1A, Upgraded to A3 (sf); previously on Jul 26, 2013 Upgraded to Baa2 (sf)
Cl. 1-A1B, Upgraded to Ba3 (sf); previously on Jun 5, 2014 Upgraded to B3 (sf)
Cl. 2-A, Upgraded to Baa2 (sf); previously on Jun 5, 2014 Upgraded to Ba1 (sf)
The rating actions are a result of the recent performance of the underlying pools and reflect Moody's updated loss expectation on these pools. The rating upgrades are due to the stable collateral performance and the credit enhancement available to the bonds. The rating downgrade is due to the the erosion of credit enhancement available to the bond.
The principal methodology used in these ratings was "US RMBS Surveillance Methodology" published in November 2013. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.
Factors that would lead to an upgrade or downgrade of the rating:
Ratings in the US RMBS sector remain exposed to the high level of macroeconomic uncertainty, and in particular the unemployment rate. The unemployment rate fell to 4.9% in January 2016 from 5.7% in January 2015. Moody's forecasts an unemployment central range of 4.5% to 5.5% for the 2016 year. Deviations from this central scenario could lead to rating actions in the sector.
House prices are another key driver of US RMBS performance. Moody's expects house prices to continue to rise in 2016. Lower increases than Moody's expects or decreases could lead to negative rating actions.
Finally, performance of RMBS continues to remain highly dependent on servicer procedures. Any change resulting from servicing transfers or other policy or regulatory change can impact the performance of these transactions.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Mar 16, 2016|
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