Moody's Downgrades Certain RFC (RASC) Subprime RMBS
New York, October 17, 2008 -- Moody's Investors Service has downgraded the ratings of 346 tranches from
43 subprime RMBS transactions issued by RFC (RASC). The collateral
backing these transactions consists primarily of first-lien,
fixed and adjustable-rate, subprime residential mortgage
loans.
These actions follow and are as a result of Moody's September 18th 2008
announcement that it had updated its loss projections on first-lien
subprime RMBS. (See Moodys.com for the report: Subprime
RMBS Loss Projection Update: September 2008 for details)
Moody's Investors Service also takes action on certain insured notes as
identified below. The ratings on securities that are guaranteed
or "wrapped" by a financial guarantor is the higher of a) the rating of
the guarantor or b) the published underlying rating.
The underlying ratings on these insured notes reflect the intrinsic credit
quality of the notes in the absence of the guarantee. The current
ratings on the below notes are consistent with Moody's practice of rating
insured securities at the higher of the guarantor's insurance financial
strength rating and any underlying rating that is public.
Complete rating actions are as follows:
Issuer: RASC Series 2005-AHL1 Trust
Cl. M-5, Downgraded to Ba1 from Baa3
Cl. M-6, Downgraded to B3 from B2
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Caa3
Issuer: RASC Series 2005-AHL2 Trust
Cl. M-4, Downgraded to Baa3 from Baa2
Cl. M-5, Downgraded to B1 from Ba3
Cl. M-6, Downgraded to Ca from B2
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from Caa1
Cl. M-9, Downgraded to C from Caa2
Cl. M-10, Downgraded to C from Caa3
Issuer: RASC Series 2005-AHL3 Trust
Cl. M-1, Downgraded to A2 from A1
Cl. M-3, Downgraded to Caa1 from B3
Cl. M-4, Downgraded to Ca from B3
Cl. M-5, Downgraded to C from Caa1
Cl. M-6, Downgraded to C from Caa2
Cl. M-7, Downgraded to C from Caa3
Cl. M-8, Downgraded to C from Ca
Issuer: RASC Series 2005-EMX1 Trust
Cl. M-5, Downgraded to Baa3 from Baa2
Cl. M-6, Downgraded to Ba2 from Ba1
Cl. B, Downgraded to Ca from Ba3
Issuer: RASC Series 2005-EMX2 Trust
Cl. M-2, Downgraded to A1 from Aa2
Cl. M-3, Downgraded to A2 from Aa3
Cl. M-4, Downgraded to Baa1 from A1
Cl. M-5, Downgraded to Baa2 from Baa1
Cl. M-6, Downgraded to Ba1 from Baa2
Cl. M-7, Downgraded to B2 from Baa3
Cl. M-8, Downgraded to Caa1 from Ba1
Cl. M-9, Downgraded to Caa3 from Ba3
Cl. B, Downgraded to Ca from B2
Issuer: RASC Series 2005-EMX3 Trust
Cl. M-8, Downgraded to Ba2 from Baa3
Cl. M-9, Downgraded to Caa2 from B3
Cl. M-10, Downgraded to C from Caa1
Issuer: RASC Series 2005-EMX4 Trust
Cl. M-5, Downgraded to Baa2 from A2
Cl. M-6, Downgraded to B1 from A3
Cl. M-7, Downgraded to Caa3 from Baa2
Cl. M-8, Downgraded to C from Ba2
Cl. M-9, Downgraded to C from B2
Issuer: RASC Series 2005-EMX5 Trust
Cl. A-2, Downgraded to B1 from Aa3
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: Caa1
Cl. A-3, Currently B1
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: Caa2
Issuer: RASC Series 2005-KS1 Trust
Cl. M-2, Downgraded to Baa2 from A2
Cl. M-3, Downgraded to Ba1 from A3
Cl. M-4, Downgraded to B2 from Baa1
Cl. M-5, Downgraded to Ca from Baa2
Cl. M-6, Downgraded to C from Baa3
Cl. B, Downgraded to C from Ba1
Issuer: RASC Series 2005-KS10 Trust
Cl. M-6, Downgraded to Ba1 from Baa3
Cl. M-7, Downgraded to Caa2 from B2
Cl. M-8, Downgraded to C from B2
Cl. M-9, Downgraded to C from B3
Cl. B, Downgraded to C from Caa1
Issuer: RASC Series 2005-KS11 Trust
Cl. M-3, Downgraded to A1 from Aa3
Cl. M-4, Downgraded to Baa1 from A1
Cl. M-5, Downgraded to Ba3 from A3
Cl. M-6, Downgraded to Caa2 from Baa3
Cl. M-7, Downgraded to C from B2
Cl. M-8, Downgraded to C from B2
Cl. M-9, Downgraded to C from Caa1
Issuer: RASC Series 2005-KS12 Trust
Cl. M-3, Downgraded to A1 from Aa3
Cl. M-4, Downgraded to Baa2 from A1
Cl. M-5, Downgraded to B1 from A2
Cl. M-6, Downgraded to Caa2 from Baa2
Cl. M-7, Downgraded to C from Ba3
Cl. M-8, Downgraded to C from B3
Cl. M-9, Downgraded to C from Caa1
Issuer: RASC Series 2005-KS2 Trust
Cl. M-1, Downgraded to A1 from Aa2
Cl. M-2, Downgraded to Baa3 from A2
Cl. M-3, Downgraded to Ba3 from A3
Cl. M-4, Downgraded to Ca from Baa1
Cl. M-5, Downgraded to C from Baa2
Cl. M-6, Downgraded to C from Baa3
Cl. B, Downgraded to C from Ba1
Issuer: RASC Series 2005-KS3 Trust
Cl. M-8, Downgraded to Ba3 from Ba2
Cl. M-9, Downgraded to Caa1 from Ba3
Cl. M-10, Downgraded to C from B2
Cl. B-1, Downgraded to C from Caa1
Cl. B-2, Downgraded to C from Caa2
Issuer: RASC Series 2005-KS4 Trust
Cl. M-3, Downgraded to Baa1 from A2
Cl. M-5, Downgraded to Ba1 from Baa3
Cl. M-6, Downgraded to B2 from Ba2
Cl. M-7, Downgraded to Ca from B1
Cl. B-1, Downgraded to C from B3
Issuer: RASC Series 2005-KS5 Trust
Cl. M-8, Downgraded to Ba2 from Ba1
Cl. M-9, Downgraded to Caa2 from Ba2
Cl. B-1, Downgraded to C from B1
Cl. B-2, Downgraded to C from Caa2
Issuer: RASC Series 2005-KS6 Trust
Cl. M-6, Downgraded to Baa1 from A3
Cl. M-7, Downgraded to Baa3 from Baa1
Cl. M-8, Downgraded to Ba1 from Baa3
Cl. M-9, Downgraded to Caa2 from Ba2
Cl. M-10, Downgraded to C from B1
Issuer: RASC Series 2005-KS7 Trust
Cl. M-8, Downgraded to Baa3 from Baa2
Cl. M-9, Downgraded to B2 from Ba3
Cl. M-10, Downgraded to Ca from B3
Issuer: RASC Series 2005-KS8 Trust
Cl. M-8, Downgraded to B1 from Ba2
Cl. M-9, Downgraded to Ca from B2
Cl. M-10, Downgraded to C from B3
Issuer: RASC Series 2005-KS9 Trust
Cl. M-9, Downgraded to B2 from B1
Cl. B-1, Downgraded to Ca from B3
Cl. B-2, Downgraded to C from Caa1
Issuer: RASC Series 2006-EMX1 Trust
Cl. M-2, Downgraded to Baa1 from Aa2
Cl. M-3, Downgraded to Ba1 from Aa3
Cl. M-4, Downgraded to B1 from A1
Cl. M-5, Downgraded to Caa2 from A2
Cl. M-6, Downgraded to C from A3
Cl. M-7, Downgraded to C from Baa3
Cl. M-8, Downgraded to C from B2
Cl. M-9, Downgraded to C from B3
Issuer: RASC Series 2006-EMX2 Trust
Cl. A-3, Downgraded to Aa1 from Aaa
Cl. M-1, Downgraded to A1 from Aa1
Cl. M-2, Downgraded to Baa3 from Aa2
Cl. M-3, Downgraded to B1 from Aa3
Cl. M-4, Downgraded to Caa2 from A1
Cl. M-5, Downgraded to C from A2
Cl. M-6, Downgraded to C from Baa2
Cl. M-7, Downgraded to C from B2
Cl. M-8, Downgraded to C from B3
Cl. M-9, Downgraded to C from Caa1
Issuer: RASC Series 2006-EMX3 Trust
Cl. A-2, Downgraded to Aa2 from Aaa
Cl. A-3, Downgraded to A1 from Aaa
Cl. M-1, Downgraded to Baa2 from Aa1
Cl. M-2, Downgraded to B2 from Aa2
Cl. M-3, Downgraded to Caa2 from Aa3
Cl. M-4, Downgraded to C from Baa1
Cl. M-5, Downgraded to C from B1
Cl. M-6, Downgraded to C from B2
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Caa3
Issuer: RASC Series 2006-EMX4 Trust
Cl. A-3, Downgraded to A3 from Aaa
Cl. A-4, Downgraded to Baa1 from Aaa
Cl. M-1, Downgraded to Ba3 from Aa1
Cl. M-2, Downgraded to Caa2 from A3
Cl. M-3, Downgraded to C from Ba1
Cl. M-4, Downgraded to C from B1
Cl. M-5, Downgraded to C from B2
Cl. M-6, Downgraded to C from Caa1
Cl. M-7, Downgraded to C from Caa2
Cl. M-8, Downgraded to C from Caa3
Issuer: RASC Series 2006-EMX5 Trust
Cl. A-3, Downgraded to Ba1 from Aaa
Cl. A-4, Downgraded to Ba2 from Aaa
Cl. M-1, Downgraded to Caa2 from Aa1
Cl. M-2, Downgraded to C from Baa1
Cl. M-3, Downgraded to C from Ba3
Cl. M-4, Downgraded to C from B2
Cl. M-5, Downgraded to C from B3
Cl. M-6, Downgraded to C from Caa1
Cl. M-7, Downgraded to C from Caa2
Cl. M-8, Downgraded to C from Caa3
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2006-EMX6 Trust
Cl. A-3, Downgraded to Baa3 from Aaa
Cl. A-4, Downgraded to Ba1 from Aaa
Cl. M-1, Downgraded to B3 from Aa3
Cl. M-2, Downgraded to Ca from Ba2
Cl. M-3, Downgraded to C from B1
Cl. M-4, Downgraded to C from B2
Cl. M-5, Downgraded to C from B3
Cl. M-6, Downgraded to C from Caa1
Cl. M-7, Downgraded to C from Caa2
Cl. M-8, Downgraded to C from Caa3
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2006-EMX7 Trust
Cl. A-3, Downgraded to Baa2 from Aaa
Cl. A-4, Downgraded to Baa3 from Aaa
Cl. M-1, Downgraded to B3 from Aa3
Cl. M-2, Downgraded to Ca from Ba1
Cl. M-3, Downgraded to C from B1
Cl. M-4, Downgraded to C from B2
Cl. M-5, Downgraded to C from B2
Cl. M-6, Downgraded to C from B3
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Caa3
Issuer: RASC Series 2006-EMX8 Trust
Cl. A-I-3, Downgraded to Ba3 from Aaa
Cl. A-I-4, Downgraded to B1 from Aaa
Cl. A-II, Downgraded to Ba3 from Aaa
Cl. M-1, Downgraded to Caa3 from A3
Cl. M-2, Downgraded to C from B1
Cl. M-3, Downgraded to C from B2
Cl. M-4, Downgraded to C from B3
Cl. M-5, Downgraded to C from B3
Cl. M-6, Downgraded to C from Caa1
Cl. M-7, Downgraded to C from Caa2
Cl. M-8, Downgraded to C from Caa3
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2006-EMX9 Trust
Cl. A-I-2, Downgraded to Aa2 from Aaa
Cl. A-I-3, Downgraded to Ba1 from Aaa
Cl. A-I-4, Downgraded to Ba2 from Aaa
Cl. A-II, Downgraded to Ba1 from Aaa
Cl. M-1, Downgraded to Caa2 from Aa3
Cl. M-2, Downgraded to C from B1
Cl. M-3, Downgraded to C from B1
Cl. M-4, Downgraded to C from B2
Cl. M-5, Downgraded to C from B3
Cl. M-6, Downgraded to C from Caa1
Cl. M-7, Downgraded to C from Caa2
Cl. M-8, Downgraded to C from Caa3
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2006-KS1 Trust
Cl. M-2, Downgraded to A1 from Aa2
Cl. M-3, Downgraded to Baa1 from Aa3
Cl. M-4, Downgraded to Ba1 from A2
Cl. M-5, Downgraded to B3 from Baa1
Cl. M-6, Downgraded to C from Baa3
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from B3
Cl. M-9, Downgraded to C from Caa1
Issuer: RASC Series 2006-KS2 Trust
Cl. M-2, Downgraded to A1 from Aa2
Cl. M-3, Downgraded to A3 from Aa3
Cl. M-4, Downgraded to Baa2 from A1
Cl. M-5, Downgraded to B1 from A2
Cl. M-6, Downgraded to Caa2 from A3
Cl. M-7, Downgraded to C from Ba2
Cl. M-8, Downgraded to C from B2
Cl. M-9, Downgraded to C from B3
Cl. M-10, Downgraded to C from Caa2
Issuer: RASC Series 2006-KS3 Trust
Cl. M-1, Downgraded to A1 from Aa1
Cl. M-2, Downgraded to Baa2 from Aa2
Cl. M-3, Downgraded to Ba3 from Aa3
Cl. M-4, Downgraded to Caa2 from A1
Cl. M-5, Downgraded to C from Baa2
Cl. M-6, Downgraded to C from B1
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from Caa1
Cl. M-9, Downgraded to C from Caa2
Cl. M-10, Downgraded to C from Caa3
Cl. M-11, Downgraded to C from Ca
Issuer: RASC Series 2006-KS4 Trust
Cl. A-4, Downgraded to Aa1 from Aaa
Cl. M-1, Downgraded to A2 from Aa1
Cl. M-2, Downgraded to Baa3 from Aa2
Cl. M-3, Downgraded to Ba3 from A1
Cl. M-4, Downgraded to Caa2 from Baa2
Cl. M-5, Downgraded to C from B1
Cl. M-6, Downgraded to C from B2
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Ca
Cl. M-10, Downgraded to C from Ca
Issuer: RASC Series 2006-KS5 Trust
Cl. A-3, Downgraded to Aa3 from Aaa
Cl. A-4, Downgraded to A2 from Aaa
Cl. M-1, Downgraded to Baa2 from Aa1
Cl. M-2, Downgraded to B2 from Aa2
Cl. M-3, Downgraded to Ca from A1
Cl. M-4, Downgraded to C from Baa3
Cl. M-5, Downgraded to C from B1
Cl. M-6, Downgraded to C from B2
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Caa3
Cl. B, Downgraded to C from Ca
Issuer: RASC Series 2006-KS6 Trust
Cl. A-3, Downgraded to Aa2 from Aaa
Cl. A-4, Downgraded to A1 from Aaa
Cl. M-1, Downgraded to A3 from Aa1
Cl. M-2, Downgraded to Ba1 from Aa2
Cl. M-3, Downgraded to B2 from A1
Cl. M-4, Downgraded to Caa2 from Baa2
Cl. M-5, Downgraded to C from B1
Cl. M-6, Downgraded to C from B2
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from Caa1
Cl. M-9, Downgraded to C from Caa2
Cl. B, Downgraded to C from Caa3
Issuer: RASC Series 2006-KS7 Trust
Cl. A-3, Downgraded to Aa2 from Aaa
Cl. A-4, Downgraded to A1 from Aaa
Cl. M-1, Downgraded to Baa1 from Aa1
Cl. M-2, Downgraded to Ba1 from Aa3
Cl. M-3, Downgraded to B2 from Baa1
Cl. M-4, Downgraded to Ca from Ba3
Cl. M-5, Downgraded to C from B1
Cl. M-6, Downgraded to C from B2
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from Caa1
Cl. M-9, Downgraded to C from Caa2
Issuer: RASC Series 2006-KS8 Trust
Cl. A-3, Downgraded to Baa1 from Aaa
Cl. A-4, Downgraded to Baa2 from Aaa
Cl. M-1, Downgraded to B1 from A2
Cl. M-2, Downgraded to Caa3 from Ba3
Cl. M-3, Downgraded to C from B1
Cl. M-4, Downgraded to C from B2
Cl. M-5, Downgraded to C from B3
Cl. M-6, Downgraded to C from Caa1
Cl. M-7, Downgraded to C from Caa2
Cl. M-8, Downgraded to C from Caa3
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2006-KS9 Trust
Cl. A-I-2, Downgraded to Aa2 from Aaa
Cl. A-I-3, Downgraded to Ba3 from Aaa
Cl. A-I-4, Downgraded to B1 from Aaa
Cl. A-II, Downgraded to Ba3 from Aaa
Cl. M-1S, Downgraded to Caa3 from A3
Cl. M-2S, Downgraded to C from B1
Cl. M-3S, Downgraded to C from B2
Cl. M-4, Downgraded to C from B3
Cl. M-5, Downgraded to C from Caa1
Cl. M-6, Downgraded to C from Caa2
Cl. M-7, Downgraded to C from Caa3
Cl. M-8, Downgraded to C from Ca
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2007-EMX1 Trust
Cl. A-I-1, Downgraded to B1 from A1
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: B3
Cl. A-I-2, Downgraded to B1 from Ba2
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: Caa2
Cl. A-I-3, Currently B1
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: Caa3
Cl. A-I-4, Currently B1
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: Caa3
Cl. A-II, Currently B1
Financial Guarantor: Financial Guaranty Insurance Company (B1,
negative outlook)
Underlying Rating: Caa2
Issuer: RASC Series 2007-KS1 Trust
Cl. A-2, Downgraded to A2 from Aaa
Cl. A-3, Downgraded to Baa1 from Aaa
Cl. A-4, Downgraded to Baa2 from Aaa
Cl. M-1S, Downgraded to B1 from Aa1
Cl. M-2S, Downgraded to Caa2 from A1
Cl. M-3S, Downgraded to C from Baa1
Cl. M-4, Downgraded to C from Ba2
Cl. M-5, Downgraded to C from B1
Cl. M-6, Downgraded to C from B2
Cl. M-7, Downgraded to C from B3
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2007-KS2 Trust
Cl. A-I-2, Downgraded to Baa2 from Aaa
Cl. A-I-3, Downgraded to Ba1 from Aaa
Cl. A-I-4, Downgraded to Ba2 from Aaa
Cl. A-II, Downgraded to Ba1 from Aaa
Cl. M-1, Downgraded to Caa1 from Aa3
Cl. M-2, Downgraded to C from Baa3
Cl. M-3, Downgraded to C from B1
Cl. M-4, Downgraded to C from B1
Cl. M-5, Downgraded to C from B2
Cl. M-6, Downgraded to C from B3
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Issuer: RASC Series 2007-KS3 Trust
Cl. A-I-2, Downgraded to Baa2 from Aaa
Cl. A-I-3, Downgraded to Ba1 from Aaa
Cl. A-I-4, Downgraded to Ba2 from Aaa
Cl. A-II, Downgraded to Ba1 from Aaa
Cl. M-1S, Downgraded to Caa2 from A1
Cl. M-2S, Downgraded to C from Ba3
Cl. M-3S, Downgraded to C from B1
Cl. M-4, Downgraded to C from B1
Cl. M-5, Downgraded to C from B2
Cl. M-6, Downgraded to C from B3
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Ca
Issuer: RASC Series 2007-KS4 Trust
Cl. A-2, Downgraded to Baa2 from Aaa
Cl. A-3, Downgraded to Ba2 from Aaa
Cl. A-4, Downgraded to Ba3 from Aaa
Cl. M-1S, Downgraded to B3 from Aa1
Cl. M-2S, Downgraded to C from Baa1
Cl. M-3S, Downgraded to C from Baa2
Cl. M-4, Downgraded to C from B1
Cl. M-5, Downgraded to C from B2
Cl. M-6, Downgraded to C from B3
Cl. M-7, Downgraded to C from Caa1
Cl. M-8, Downgraded to C from Caa2
Cl. M-9, Downgraded to C from Ca
A list of these actions including CUSIP identifiers may be found at:
Excel: http://www.moodys.com/cust/getdocumentByNotesDocId.asp?criteria=PBS_SF145710
For more information please see www.moodys.com.
New York
Navneet Agarwal
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Joseph Rocco
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653