Moody's downgrades 35 certificates from 5 Nomura Asset Acceptance Corporation, Alternative Loan Trust transactions
New York, December 03, 2007 -- Moody's Investors Service has downgraded 35 certificates from five transactions
issued by Nomura Asset Acceptance Corporation, Alternative Loan
Trust. All transactions are backed by second lien loans.
The certificates were downgraded because the bonds' credit enhancement
levels, including excess spread and subordination, were too
low compared to the current projected loss numbers at the previous rating
levels.
Substantial pool losses over the last few months have continued to erode
credit enhancement available to the mezzanine and senior certificates.
Despite the large amount of write-offs due to losses, delinquency
pipelines have remained high as borrowers continue to default.
The actions reflect Moody's expectation that the significant delinquency
pipelines will have a further negative impact on the credit support for
the senior and mezzanine certificates.
Complete rating actions are as follows:
Issuer: Nomura Asset Acceptance Corporation, Alternative Loan
Trust
Downgrade:
Series 2006-S1, Class M-4, Downgraded to Baa2
from A2;
Series 2006-S1, Class M-5, Downgraded to Ba1
from Baa2;
Series 2006-S1, Class M-6, Downgraded to B2
from Baa3;
Series 2006-S1, Class B-1, Downgraded to Caa2
from Ba1;
Series 2006-S1, Class B-2, Downgraded to Ca
from B1;
Series 2006-S1, Class B-3, Downgraded to C from
Caa3;
Series 2006-S2, Class M-1, Downgraded to A3
from Aa3;
Series 2006-S2, Class M-2, Downgraded to Ba1
from Baa1;
Series 2006-S2, Class M-3, Downgraded to B2
from Baa2;
Series 2006-S2, Class M-4, Downgraded to Caa2
from Ba1;
Series 2006-S2, Class M-5, Downgraded to Ca
from Ba2;
Series 2006-S2, Class M-6, Downgraded to C from
B3;
Series 2006-S2, Class B-1, Downgraded to C from
Ca;
Series 2006-S3, Class M-2, Downgraded to Baa3
from Baa1;
Series 2006-S3, Class M-3, Downgraded to Ba2
from Baa2;
Series 2006-S3, Class M-4, Downgraded to B1
from Ba1;
Series 2006-S3, Class M-5, Downgraded to Caa2
from Ba2;
Series 2006-S3, Class M-6, Downgraded to Ca
from B1;
Series 2006-S3, Class B-1, Downgraded to C from
B3;
Series 2006-S3, Class B-2, Downgraded to C from
Ca;
Series 2006-S4, Class M-1, Downgraded to A3
from A1;
Series 2006-S4, Class M-2, Downgraded to Baa3
from A3;
Series 2006-S4, Class M-3, Downgraded to Ba2
from Baa1;
Series 2006-S4, Class M-4, Downgraded to B1
from Baa3;
Series 2006-S4, Class M-5, Downgraded to Caa2
from Ba1;
Series 2006-S4, Class M-6, Downgraded to Ca
from Ba3;
Series 2006-S4, Class B-1, Downgraded to C from
B3;
Series 2006-S4, Class B-2, Downgraded to C from
Ca;
Series 2006-S5, Class A, Downgraded to A3 from A1;
Series 2006-S5, Class M-1, Downgraded to Baa3
from A3;
Series 2006-S5, Class M-2, Downgraded to B1
from Baa1;
Series 2006-S5, Class M-3, Downgraded to Ca
from Baa3;
Series 2006-S5, Class M-4, Downgraded to C from
Ba1;
Series 2006-S5, Class M-5, Downgraded to C from
B2;
Series 2006-S5, Class M-6, Downgraded to C from
Ca.
For more information see www.Moodys.com
New York
Nicolas S. Weill
Managing Director - Chief Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Aron Bergman
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653