New York, July 01, 2009 -- Moody's Investors Service has downgraded the ratings of 130 securities
from 25 transactions issued by Residential Asset Securities Corporation.
These actions are part of an ongoing review of subprime RMBS transactions.
The rating actions are the result of an analysis of credit enhancement
relative to updated collateral loss projections. The revised loss
projections generally result from deterioration in collateral performance
in recent months. Additionally, most affected transactions
have, at some point, passed performance triggers and released
portions of credit enhancement. In addition, in certain RASC
deals, the over-collateralization accounts and excess spread
are cross-collateralized between the different pools within a transaction.
Therefore, for these deals, losses incurred on a deteriorating
pool could erode the over-collateralization accounts for both pools.
As a result, the better performing pool's loss may be allocated
to subordinate bonds instead of being absorbed by that pool's outstanding
over-collateralization amount. This feature can adversely
affect the creditworthiness of certain bonds backed by better performing
collateral relative to a non-related collateral group from the
same transaction.
Moody's approach to analyzing seasoned subprime pools (i.e.
prior to 2H 2005) takes into account the annualized loss rate from last
12 months ("Recent Losses") and the projected loss rate over next 12 months
("Pipeline Losses"), and then translates these measures into lifetime
losses based on a deal's expected remaining life. Recent Losses
are calculated by assessing cumulative losses incurred over the past 12-months
as a percentage of the average pool factor in the last year. For
Pipeline Losses, Moody's uses an annualized roll rate of 15%,
30%, 65% and 90% for loans that are delinquent
60-days, 90+ days, are in foreclosure, and
REO respectively. Moody's then applies deal-specific severity
assumptions, in this case ranging from 55% to 80%.
The results of these two calculations - Recent Losses and Pipeline
Losses - are weighted to arrive at the lifetime cumulative loss
projection.
Other methodologies and factors that may have been considered in the process
of rating this issue can also be found at www.moodys.com
in the Credit Policy & Methodologies directory.
The complete rating actions follow:
RASC Series 1999-RS1
A-I-3, Downgraded to Ba1; previously on 11/17/2008
Published at Aa2
A-II, Downgraded to Baa2; previously on 11/17/2008 Published
at Aaa
RASC Series 2001-KS2 Trust
Cl. A-I-5, Downgraded to Baa2; previously
on 6/29/2001 Assigned Aaa
Cl. A-I-6, Downgraded to Baa1; previously
on 6/29/2001 Assigned Aaa
Cl. M-I-1, Downgraded to Ba2; previously
on 2/28/2005 Downgraded to A2
Cl. M-I-2, Downgraded to C; previously
on 6/7/2006 Downgraded to Baa3
Cl. M-I-3, Downgraded to C; previously
on 5/17/2007 Downgraded to Caa2
Cl. A-II, Downgraded to A1; previously on 6/29/2001
Assigned Aaa
Cl. M-II-1, Downgraded to B2; previously
on 9/29/2006 Downgraded to A1
Cl. M-II-2, Downgraded to C; previously
on 6/7/2006 Downgraded to Baa3
Cl. M-II-3, Downgraded to C; previously
on 6/29/2001 Assigned Baa2
RASC Series 2001-KS3 Trust
A-I-5, Downgraded to Baa1; previously on 10/23/2001
Assigned Aaa
A-I-6, Downgraded to A3; previously on 10/23/2001
Assigned Aaa
A-II, Downgraded to Aa3; previously on 10/23/2001 Assigned
Aaa
M-I-1, Downgraded to B1; previously on 2/28/2005
Downgraded to A2
M-I-2, Downgraded to C; previously on 6/7/2006
Downgraded to Ba2
M-I-3, Downgraded to C; previously on 6/7/2006
Downgraded to Caa1
M-II-1, Downgraded to Ba1; previously on 10/23/2001
Assigned Aa2
M-II-2, Downgraded to Ca; previously on 10/23/2001
Assigned A2
M-II-3, Downgraded to C; previously on 10/23/2001
Assigned Baa2
RASC Series 2002-KS1 Trust
Cl. A-I-5, Downgraded to Ba3; previously
on 11/17/2008 Downgraded to Baa1
Cl. A-I-6, Downgraded to Ba3; previously
on 11/17/2008 Downgraded to Baa1
Cl. A-IIA, Downgraded to Ba3; previously on 11/17/2008
Downgraded to Baa1
Cl. A-IIB, Downgraded to Ba3; previously on 11/17/2008
Downgraded to Baa1
RASC Series 2002-KS2 Trust
Cl. A-I-5, Downgraded to Aa2; previously
on 4/29/2002 Assigned Aaa
Cl. M-I-1, Downgraded to Baa3; previously
on 9/25/2006 Downgraded to Aa3
Cl. M-I-2, Downgraded to Ca; previously
on 9/25/2006 Downgraded to Ba1
Cl. M-I-3, Downgraded to C; previously
on 9/25/2006 Downgraded to Caa3
RASC Series 2003-KS11 Trust
Cl. M-I-2, Downgraded to Baa1; previously
on 2/20/2004 Assigned A2
Cl. M-I-3, Downgraded to B3; previously
on 2/20/2004 Assigned Baa2
Cl. M-II-1, Downgraded to A1; previously
on 2/20/2004 Assigned Aa2
Cl. M-II-2, Downgraded to Baa3; previously
on 2/20/2004 Assigned A2
Cl. M-II-3, Downgraded to Caa2; previously
on 2/20/2004 Assigned Baa2
RASC Series 2003-KS2 Trust
Cl. M-I-2, Downgraded to Baa1; previously
on 4/24/2003 Assigned A2
Cl. M-I-3, Downgraded to Ba1; previously
on 4/24/2003 Assigned Baa2
RASC Series 2003-KS4 Trust
Cl. A-II-A, Downgraded to Ba3; previously
on 11/17/2008 Downgraded to Baa1
Cl. A-II-B, Downgraded to Ba3; previously
on 11/17/2008 Downgraded to Baa1
Cl. A-III, Downgraded to Ba3; previously on 11/17/2008
Downgraded to Baa1
Cl. M-I-1, Downgraded to A1; previously
on 7/31/2003 Assigned Aa2
Cl. M-I-2, Downgraded to Baa2; previously
on 7/31/2003 Assigned A2
Cl. M-I-3, Downgraded to Caa1; previously
on 7/31/2003 Assigned Baa2
RASC Series 2003-KS5 Trust
Cl. A-I-5, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-I-6, Downgraded to Ba2; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-II-A, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-II-B, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
RASC Series 2003-KS6 Trust
Cl. A-I, Downgraded to Aa3; previously on 8/29/2003
Assigned Aaa
Cl. A-II, Downgraded to Aa3; previously on 8/29/2003
Assigned Aaa
Cl. M-1, Downgraded to Ba2; previously on 1/3/2008
Downgraded to Baa2
Cl. M-2, Downgraded to C; previously on 1/3/2008
Downgraded to B1
Cl. M-3, Downgraded to C; previously on 1/3/2008
Downgraded to B2
RASC Series 2003-KS7 Trust
Cl. A-I-5, Downgraded to Aa2; previously
on 9/26/2003 Assigned Aaa
Cl. A-I-6, Downgraded to Aa1; previously
on 9/26/2003 Assigned Aaa
Cl. M-I-1, Downgraded to A2; previously
on 9/26/2003 Assigned Aa2
Cl. M-I-2, Downgraded to Baa3; previously
on 9/26/2003 Assigned A2
Cl. M-I-3, Downgraded to Caa3; previously
on 9/26/2003 Assigned Baa2
RASC Series 2003-KS8 Trust
Cl. M-I-1, Downgraded to A1; previously
on 11/21/2003 Assigned Aa2
Cl. M-I-2, Downgraded to Baa2; previously
on 11/21/2003 Assigned A2
Cl. M-I-3, Downgraded to B3; previously
on 11/21/2003 Assigned Baa2
RASC Series 2003-KS9 Trust
Cl. A-I-4, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-I-5, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-I-6, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-II-A, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
Cl. A-II-B, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Baa2
RASC Series 2004-KS1 Trust
Cl. M-I-1, Downgraded to A1; previously
on 4/15/2004 Assigned Aa2
Cl. M-I-2, Downgraded to Baa3; previously
on 4/15/2004 Assigned A2
Cl. M-I-3, Downgraded to Caa1; previously
on 4/15/2004 Assigned Baa2
Cl. M-II-1, Downgraded to Aa3; previously
on 4/15/2004 Assigned Aa2
Cl. M-II-2, Downgraded to Baa3; previously
on 11/16/2007 Downgraded to Baa1
Cl. M-II-3, Downgraded to B2; previously
on 11/16/2007 Downgraded to Ba3
RASC Series 2004-KS10 Trust
Cl. M-1, Downgraded to A1; previously on 11/19/2004
Assigned Aa2
Cl. M-2, Downgraded to Baa3; previously on 11/19/2004
Assigned A2
Cl. M-3, Downgraded to Ba2; previously on 11/16/2007
Downgraded to Baa1
Cl. M-4, Downgraded to Caa3; previously on 11/16/2007
Downgraded to Baa3
Cl. M-5, Downgraded to C; previously on 11/16/2007
Downgraded to Ba2
Cl. M-6, Downgraded to C; previously on 11/16/2007
Downgraded to B1
Cl. B, Downgraded to C; previously on 11/16/2007 Downgraded
to B3
RASC Series 2004-KS11 Trust
Cl. M-1, Downgraded to Baa2; previously on 3/23/2009
Downgraded to A2
Cl. M-2, Downgraded to Caa3; previously on 3/23/2009
Downgraded to B3
Cl. M-3, Downgraded to C; previously on 3/23/2009
Downgraded to Caa2
RASC Series 2004-KS12 Trust
Cl. M-1, Downgraded to A2; previously on 1/17/2005
Assigned Aa2
Cl. M-2, Downgraded to Ba3; previously on 3/23/2009
Downgraded to Ba2
Cl. M-3, Downgraded to Ca; previously on 3/23/2009
Downgraded to B3
RASC Series 2004-KS2 Trust
Cl. M-I-1, Downgraded to A1; previously
on 4/15/2004 Assigned Aa2
Cl. M-I-2, Downgraded to Baa3; previously
on 4/15/2004 Assigned A2
Cl. M-I-3, Downgraded to Ca; previously
on 11/16/2007 Downgraded to Ba1
Cl. M-II-1, Downgraded to A1; previously
on 4/15/2004 Assigned Aa2
Cl. M-II-2, Downgraded to Baa3; previously
on 4/15/2004 Assigned A2
Cl. M-II-3, Downgraded to Ca; previously
on 11/16/2007 Downgraded to Ba3
RASC Series 2004-KS3 Trust
Cl. A-I-5, Downgraded to Aa2; previously
on 5/28/2004 Assigned Aaa
Cl. A-I-6, Downgraded to Aa1; previously
on 5/28/2004 Assigned Aaa
Cl. M-I-1, Downgraded to A2; previously
on 5/28/2004 Assigned Aa2
Cl. M-I-2, Downgraded to Baa3; previously
on 5/28/2004 Assigned A2
Cl. M-I-3, Downgraded to Ca; previously
on 5/28/2004 Assigned Baa2
Cl. M-II-1, Downgraded to A2; previously
on 5/28/2004 Assigned Aa2
Cl. M-II-2, Downgraded to Ba1; previously
on 5/28/2004 Assigned A2
Cl. M-II-3, Downgraded to Ca; previously
on 11/16/2007 Downgraded to Ba2
RASC Series 2004-KS4 Trust
Cl. A-I-4, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Ba2
Cl. A-I-5, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Ba2
Cl. A-I-6, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Ba2
Cl. A-II-A, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Ba2
Cl. A-II-B3, Downgraded to Ba3; previously
on 4/13/2009 Downgraded to Ba2
RASC Series 2004-KS5 Trust
Cl. A-I-5, Downgraded to Aa3; previously
on 8/16/2004 Assigned Aaa
Cl. A-I-6, Downgraded to Aa2; previously
on 8/16/2004 Assigned Aaa
Cl. M-I-1, Downgraded to Baa2; previously
on 8/16/2004 Assigned Aa2
Cl. M-I-2, Downgraded to B3; previously
on 8/16/2004 Assigned A2
Cl. M-I-3, Downgraded to Caa3; previously
on 8/16/2004 Assigned Baa2
Cl. M-II-1, Downgraded to Baa1; previously
on 8/16/2004 Assigned Aa2
Cl. M-II-2, Downgraded to B2; previously
on 8/16/2004 Assigned A2
Cl. M-II-3, Downgraded to C; previously
on 11/16/2007 Downgraded to Ba2
RASC Series 2004-KS6 Trust
Cl. A-I-4, Downgraded to Aa3; previously
on 8/30/2004 Assigned Aaa
Cl. A-I-5, Downgraded to A2; previously
on 8/30/2004 Assigned Aaa
Cl. A-I-6, Downgraded to A1; previously
on 8/30/2004 Assigned Aaa
Cl. M-I-1, Downgraded to Baa3; previously
on 8/30/2004 Assigned Aa2
Cl. M-I-2, Downgraded to Ca; previously
on 8/30/2004 Assigned A2
Cl. M-I-3, Downgraded to C; previously
on 8/30/2004 Assigned Baa2
Cl. M-II-1, Downgraded to A1; previously
on 8/30/2004 Assigned Aa2
Cl. M-II-2, Downgraded to B3; previously
on 8/30/2004 Assigned A2
Cl. M-II-3, Downgraded to C; previously
on 11/16/2007 Downgraded to Ba2
RASC Series 2004-KS7 Trust
Cl. A-I-3, Downgraded to B1; previously
on 8/8/2008 Downgraded to Ba3
Current Underlying: Downgraded to B1; previously on 8/8/2008
Published at Ba3
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-I-4, Downgraded to B3; previously
on 8/8/2008 Downgraded to B1
Current Underlying: Downgraded to B3; previously on 8/8/2008
Published at B1
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-I-5, Downgraded to B3; previously
on 12/19/2008 Downgraded to B2
Current Underlying: Downgraded to B3; previously on 8/8/2008
Published at B2
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-I-6, Downgraded to B3; previously
on 8/8/2008 Downgraded to B1
Current Underlying: Downgraded to B3; previously on 8/8/2008
Published at B1
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-II-A, Downgraded to Caa2; previously
on 12/19/2008 Downgraded to B2
Current Underlying: Downgraded to Caa2; previously on 8/8/2008
Published at B2
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-II-B3, Downgraded to Caa2; previously
on 12/19/2008 Downgraded to B3
Current Underlying: Downgraded to Caa2; previously on 8/8/2008
Published at B3
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
RASC Series 2004-KS8 Trust
Cl. M-II-1, Downgraded to Baa3; previously
on 3/23/2009 Downgraded to Baa2
Cl. M-II-2, Downgraded to Caa3; previously
on 3/23/2009 Downgraded to B2
Cl. M-II-3, Downgraded to C; previously
on 3/23/2009 Downgraded to Ca
RASC Series 2004-KS9 Trust
Cl. A-I-4, Downgraded to B2; previously
on 8/8/2008 Published at Baa2
Current Underlying: Downgraded to B2; previously on 8/8/2008
Published at Baa2
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-I-5, Downgraded to B3; previously
on 8/8/2008 Published at Baa2
Current Underlying: Downgraded to B3; previously on 8/8/2008
Published at Baa2
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
Cl. A-I-6, Downgraded to B3; previously
on 8/8/2008 Published at Baa2
Current Underlying: Downgraded to B3; previously on 8/8/2008
Published at Baa2
Financial Guarantor: Financial Guaranty Insurance Company (Insured
Rating Withdrawn on 3/25/2009)
A list of these actions including CUSIP identifiers may be found at:
Excel: http://www.moodys.com/cust/getdocumentByNotesDocId.asp?criteria=PBS_SF171655
For more information please see www.moodys.com.
New York
Amelia (Amy) Tobey
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Joseph DiMiceli
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's downgrades $1.9 billion of RASC subprime RMBS