Moody's downgrades First International Bank small business loan deals
New York, August 23, 2006 -- Moody's Investors Service downgrades nine classes of notes issued in seven
securitizations originally sponsored by First International Bank (FIB)
and confirms eight classes at their current ratings. FIB is now
known as UPS Capital Business Credit (UPSBC). The notes were placed
on review for possible downgrade on April 4, 2006 and the current
action concludes the review of the notes. The downgrades are due
to worse than expected performance of the underlying collateral pools.
The following data is as of the August 15, 2006 remittance date.
The complete rating action is as follows:
Issuer: FNBNE Business Loan Trust 1998-A
$5,537,852.07 Class A Notes, rating confirmed
at A2
$325,756.00 Class M-1 Notes, rating confirmed
at Baa2
$325,756.00 Class M-2 Notes, rating confirmed
at Ba1
Issuer: FIB Business Loan Trust 1999-A
$7,109,674.09 Class A Notes, rating confirmed
at A2
$326,336.07 Class M-1 Notes, rating confirmed
at Baa2
$326,336.07 Class M-2 Notes, rating confirmed
at Ba3
Issuer: FIB Business Loan Trust 2000-A
$9,537,636.57 Class A Notes, downgraded
to Caa2 from B2
$1,336,968.95 Class M-1 Notes,
downgraded to C from Ca
Issuer: First National Bank of New England SBA Loan-Backed
Trust 1998-1
$1,830,661.32 Class A Notes, rating confirmed
at Baa2
$203,480.89 Class B Notes, rating confirmed
at B2
Issuer: First International Bank Trust 1999-1
$5,519,504.74 Class A Notes, downgraded
to Ba3 from Baa2
$490,111.54 Class M Notes, downgraded to B3
from B2
$123,867.11 Class B Notes, downgraded to Caa1
from B3
Issuer: First International Bank Trust 2000-1
$7,727,435.63 Class A Notes, downgraded
to Caa3 from B2
$1,840,551.57 Class M Notes, downgraded
to C from Ca
Issuer: First International Bank Trust 2000-2
$6,109,556.55 Class A Notes, downgraded
to Ba2 from Baa1
$529,494.90 Class M Notes, downgraded to B2
from Ba2
The pool factor in the 1998-A securitization was 10.74%.
Credit support for Class A notes consisted of the reserve account equal
to approximately 20.22% of the outstanding pool balance,
14.21% subordination, overcollateralization of 6.48%,
and excess spread. Credit support for the class M-1 notes
included the 20.22% reserve account, 9.55%
subordination, 6.48% overcollateralization,
and excess spread. Credit support for the class M-2 notes
included the 20.22% reserve account, 4.88%
subordination, 6.48% overcollateralization,
and excess spread.
Loans over 60 days delinquent amounted to 15.29% of the
outstanding pool balance, and the ratio of cumulative net losses
over the original pool balance was 7.59%.
The pool factor in the 1999-A securitization was 14.29%.
Credit support for Class A notes consisted of the reserve account equal
to approximately 19.27% of the outstanding pool balance,
39.65% subordination, and excess spread, and
was partially compensated by 16.21% undercollateralization.
Credit support for Class M-1 notes included the 19.27%
reserve account, 36.14% subordination, and excess
spread, partially compensated by 16.21% undercollateralization.
Credit support for Class M-2 notes included the 19.27%
reserve account, 32.63% subordination, and excess
spread, partially compensated by 16.21% undercollateralization.
Loans over 60 days delinquent amounted to 15.90% of the
outstanding pool balance, and the ratio of cumulative net losses
over the original pool balance was 16.44%.
The pool factor in the 2000-A securitization was 15.48%.
Credit support for Class A notes consisted of 46.48% subordination
and excess spread, and was partially compensated by 41.24%
undercollateralization; the balance of the reserve account was zero.
Class M-1 notes were undercollateralized by an amount equal to
8.05% of the current pool balance. Loans over 60
days delinquent amounted to 39.23% of the outstanding pool
balance, and the ratio of cumulative net losses over the original
pool balance was 22.60%.
The pool factor in the 1998-1 securitization was 7.56%.
Credit support for Class A notes consisted of the reserve account equal
to approximately 30.61% of the outstanding pool balance,
10.00% subordination, and excess spread. Credit
support for the class B notes included the 30.61% reserve
account and excess spread. Loans over 60 days delinquent amounted
to 32.34% of the outstanding pool balance, and the
ratio of cumulative net losses over the original pool balance was 10.77%.
The pool factor in the 1999-1 securitization was 16.18%.
Credit support for Class A notes consisted of the reserve account equal
to approximately 11.85% of the outstanding pool balance,
10.14% subordination, and excess spread, and
was partially compensated by 1.33% undercollateralization.
Credit support for Class M notes included the 11.85% reserve
account, 2.05% subordination, and excess spread,
partially compensated by 1.33% undercollateralization.
Credit support for Class B notes included the 11.85% reserve
account and excess spread, partially compensated by 1.33%
undercollateralization. Loans over 60 days delinquent amounted
to 28.04% of the outstanding pool balance, and the
ratio of cumulative net losses over the original pool balance was 15.11%.
The pool factor in the 2000-1 securitization was 19.80%.
Class A and Class M notes were undercollateralized by an amount respectively
equal to 8.89% and 34.83% of the current pool
balance. Loans over 60 days delinquent amounted to 28.89%
of the outstanding pool balance, and the ratio of cumulative net
losses over the original pool balance was 24.03%.
The pool factor in the 2000-2 securitization was 22.63%.
Credit support for Class A notes consisted of the reserve account equal
to approximately 15.64% of the outstanding pool balance,
17.52% subordination, and excess spread, and
was partially compensated by 7.52% undercollateralization.
Credit support for Class M notes included the 15.64% reserve
account, 9.72% subordination, and excess spread,
partially compensated by 7.52% undercollateralization.
Loans over 60 days delinquent amounted to 19.80% of the
outstanding pool balance, and the ratio of cumulative net losses
over the original pool balance was 17.58%.
UPS Capital Corporation, a wholly-owned subsidiary of United
Parcel Service, Inc., purchased FIB in August 2001.
In April 2003, FIB changed its name to UPSBC. UPSBC is currently
servicing the portfolio. FIB was formerly known as First National
Bank of New England.
For more information please see www.Moodys.com.
New York
Nicolas S. Weill
Managing Director - Chief Credit
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Luisa De Gaetano
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653