Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
12 Aug 2010
Approximately EUR 1.1 billion of debt securities affected
London, 12 August 2010 -- Moody's Investors Service announced today that it has downgraded the ratings
of the class A3, B and C notes issued by Celtic Residential Irish
Mortgage Securitisation No. 12 Limited (Celtic 12). A detailed
list of the rating actions is provided at the end of this press release.
Last rating action date for Celtic 12 was 23 July 2010, when the
Class A3 and Class B were placed under review for possible downgrade given
deterioration in credit trends, most specifically 90d+ arrears.
The Class C notes in Celtic 12 were put on review for possible downgrade
in July 2009.
Today's rating action concludes the review and takes into consideration
the worse-than-expected performance of the collateral and
the weakened macro-economic environment in Ireland, including
the expected increase in unemployment rates projected for 2010 as well
as further deterioration of the Irish housing market.
POOL COMPOSITION AND PORTFOLIO PERFORMANCE
Celtic 12 closed in June 2007. The transaction is backed by a portfolio
of first-ranking mortgage loans originated by First Active,
now Ulster Bank (A2/P1), and secured on residential properties located
in Ireland, for an overall balance of EUR 1.95 billion at
closing. The portfolio has a weighted average seasoning exceeding
60 months and a weighted average non-indexed loan-to-value
(LTV) of currently 66%. Irish house prices have fallen by
more than 35% below the peak reached in late 2006. As result,
indexed LTV on the pool has significantly increased, with 45%
of the portfolio currently in negative equity. The portfolio has
an indexed weighted average LTV of currently 88.2%.
Celtic 12 is performing outside of Moody's expectations as of closing.
The collateral performance has deteriorated rapidly over the past 12 months.
The share of loans more than 90 days in arrears more than doubled since
June 2009, from 3.61% of current pool balance in June
2009 to 8.28% as at June 2010. The 360d+ delinquent
loans have risen from 1.04% of the outstanding balance as
of July 2009 to 2.4% as of June 2010. Despite the
rapid deterioration in total delinquencies, Celtic 12 has experienced
only 2 cases of repossession to-date. The negligible level
of repossessions to-date in the Irish mortgage market is associated
to the lengthy foreclosure process in Ireland as well as to the moratorium
on legal proceedings introduced by the Irish government in February 2009.
Today's rating action takes into consideration the weakening of
the Irish economic conditions and in particular the effects that the anticipated
tightening of fiscal policy, on the back of government austerity,
is likely to have on the recovery in the Irish labour market and on the
household finances. Moody's does not expect the arrears level
in this transaction to stabilize before 2011.
REVISED LIFETIME LOSSES AND MILAN Aaa CE
Moody's has reassessed its lifetime loss expectation for Celtic 12 to
account for the collateral performance to date as well as the current
macroeconomic environment in Ireland. On the basis of the rapid
deterioration in 360d+ arrears in the transaction, we have
updated the portfolio expected loss assumption to 2.4% of
original balance, up from 0.8% at closing.
As part of its analysis, Moody's has also assessed loan-by-loan
information for the outstanding portfolio to determine the credit support
consistent with target rating levels and the volatility of the distribution
of future losses. For this review, "Moody's MILAN
Methodology for Rating Irish RMBS" was used. As a result,
Moody's has increased its MILAN Aaa credit enhancement (MILAN Aaa
CE) assumptions from 8.5% to 16% for Celtic 12.
The loss expectation and the Milan Aaa CE are the two key parameters used
by Moody's to calibrate its loss distribution curve, which is one
of the core inputs in the cash-flow model it uses to rate RMBS
transactions. Current credit enhancement under Class A notes (including
subordination and reserve fund) is 10.8%. Moody's
expects the notes amortization to remain sequential for the remaining
life of the deal, with class A2 to be repaid in priority to class
A3. Therefore Moody's maintains Aaa (sf) rating for the Class
Amortization of the notes: The senior notes and subordinated notes
have been amortizing sequentially since closing. The notes amortization
is to switch to sequential pay from June 2010 if class A credit enhancement
provided by the B and C notes doubles the level at closing and certain
conditions are met, such as: 1) the outstanding balance of
the loans more than 90d+ in arrears remains below 2.7%
of current pool balance, 2) there is no unpaid principal deficiency
remaining after the revenue fund allocation, 3) and the reserve
fund is at target level and 4) cumulative losses are less than 1%
of outstanding pool balance. Moody's notes that the arrears
trigger is currently in breach, with 90d+ arrears representing
currently 8.28% of current pool balance, well over
the 2.7% 90d+ arrears trigger level. Moody's
expects that the notes will continue to amortize sequentially until final
maturity of the transaction.
Reserve Fund: The reserve fund was funded at closing to EUR 19.5m.
It is non-amortizing and subject to an arrears trigger.
The reserve fund is required to build up through the application of excess
spread until it reaches an amount equal to 1 % of the original
balance of the notes plus 15% of the current outstanding balance
of loans that are more than 12 months in arrears and 30% of the
current outstanding balance of loans that are more than 24 months in arrears.
The reserve fund has build up to currently EUR 26m, or 1.8%
of current pool balance.
Hedging agreements: The transaction benefits from interest rate
swaps provided by Royal Bank of Scotland (Aa3/P-1).
Moody's ratings address the expected loss posed to investors by the legal
final maturity of the notes. Moody's ratings address only the credit
risks associated with the transactions. Other non-credit
risks have not been addressed, but may have a significant effect
on yield to investors.
The principal methodologies used in monitoring this transaction is "Moody's
MILAN Methodology for Rating Irish RMBS" published in April 2009,
and "Revising Default/Loss Assumptions Over the Life of an ABS/RMBS Transaction"
published in December 2008 and available on www.moodys.com
in the Rating Methodologies sub-directory under the Research &
Ratings tab. Please also refer to the "Irish Prime RMBS Indices
- May 2010", which is available on www.moodys.com
in the Industry / Sector Research sub-directory under the Research
& Ratings tab. Other methodologies and factors that may have
been considered in the process of rating this issuer can also be found
in the Rating Methodologies sub-directory on Moody's web site.
In addition, Moody's publishes a weekly summary of structured finance
credit, ratings and methodologies, available to all registered
users of our web site, at www.moodys.com/SFQuickCheck.
LIST OF DETAILED RATING ACTIONS
Issuer: Celtic Residential Irish Mortgage Securitisation No.12
EUR1010.685M A3 Notes, Downgraded to Aa2 (sf); previously
on Jul 23, 2010 Aaa (sf) Placed Under Review for Possible Downgrade
EUR39M B Notes, Downgraded to Baa1 (sf); previously on Jul
23, 2010 Aa3 (sf) Placed Under Review for Possible Downgrade
EUR87.75M C Notes, Downgraded to B3 (sf); previously
on Jul 22, 2009 Baa2 (sf) Placed Under Review for Possible Downgrade
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Investors Service Ltd.
Moody's downgrades 3 classes of notes issued by Celtic Residential Irish Mortgage Securitisation No. 12 Limited
One Canada Square
London E14 5FA
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.