MOODY'S DOWNGRADES RATINGS OF 14 CLASSES OF RMSC AND CONFIRMS RATINGS OF 4 CLASSES
New York, 09-29-95 -- Moody's Investors Service downgraded the ratings of 14 classes and confirmed the ratings of 4 classes of various Ryland Mortgage Securities Corporation (RMSC) transactions, concluding a review begun on August 30, 1995. The RMSC securities were on review because of rising levels of delinquent mortgages and/or declining levels of pool policy insurance. Moody's believes that some of the transactions will experience losses exceeding 6% of the original mortgage balance. In those series where the rating of a subordinate or mezzanine class was downgraded, the rating on the senior classes is not affected because the subordinate or mezzanine class provides enough additional credit enhancement to maintain the senior rating.
Downgraded securities are as follows (original class balance in $000):
RMSC, Series 1991-5, Class A, from Aa3 to A2 ($95,485);
RMSC, Series 1991-7, Class B, from Aa2 to A3 ($48,000);
RMSC, Series 1991-8, Class B-1, from Aaa to Aa1 ($12,551);
RMSC, Series 1991-11, Class A, from Aa2 to A2 ($144,743);
RMSC, Series 1991-12, Class B, from Aa2 to A2 ($45,983);
RMSC, Series 1991-15, Class B, from Aa2 to A3 ($39,972);
RMSC, Series 1991-16, Class B, from Aa2 to A3 ($57,109);
RMSC, Series 1991-16, Class I, from Aa2 to A3 ($10);
RMSC, Series 1991-17, Class B, from A2 to Baa1 ($39,523);
RMSC, Series 1991-19, Class B, from Aa2 to A3 ($40,018);
RMSC, Series 1992-1, Class B, from Aa2 to A1 ($40,351);
RMSC, Series 1992-4, Class B, from Aa2 to A3 ($59,940);
RMSC, Series 1992-5, Class A, from Aa2 to A2 ($100,160); and
RMSC, Series 1992-6, Class B, from Aa2 to Aa3 ($70,109).
Moody's confirmed the ratings on several classes of RMSC transactions, as follows (original class balance in $000):
RMSC, Series 1991-14, Class B-1, Aaa ($11,055);
RMSC, Series 1992-8, Class B, Aa2 ($105,208);
RMSC, Series 1992-15, Class M, A2 ($3,139); and
RMSC, Series 1992-15, Class B-1, Baa2 ($3,139).
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