Moody's downgrades RASC subprime deals issued in 2007
New York, December 06, 2007 -- Moody's Investors Service has downgraded the ratings of 26 tranches and
placed on review for possible downgrade the ratings of 8 tranches from
4 transactions issued by RASC in 2007. Additionally, 2 downgraded
tranches remain on review for possible further downgrade. The collateral
backing these classes consists of primarily first lien, fixed and
adjustable-rate, subprime mortgage loans.
In its analysis, Moody's has combined its published methodology
updates as of July 13th, 2007 to the non delinquent portion of the
transactions. Collateral backing these transactions is also experiencing
higher than anticipated rates of delinquency, foreclosure,
and REO relative to credit enhancement levels.
Complete list of Rating Actions:
Issuer: RASC Series 2007-KS1 Trust
Cl. M-2S Currently Aa2 on review for possible downgrade,
Cl. M-3S Currently Aa3 on review for possible downgrade,
Cl. M-4, Downgraded to A3, previously A1,
Cl. M-5, Downgraded to Baa2, previously A2,
Cl. M-6, Downgraded to Ba1, previously A3,
Cl. M-7, Downgraded to B1, previously Baa1,
Cl. M-8, Downgraded to B3, previously Baa2,
Cl. M-9, Downgraded to Ca, previously Baa3,
Cl. B, Downgraded to C, previously Ba1.
Issuer: RASC Series 2007-KS2 Trust
Cl. M-2 Currently Aa2 on review for possible downgrade,
Cl. M-3 Currently Aa3 on review for possible downgrade,
Cl. M-4, Downgraded to A3, previously A1,
Cl. M-5, Downgraded to Baa2, previously A2,
Cl. M-6, Downgraded to Ba2, previously A3,
Cl. M-7, Downgraded to B1, previously Baa1,
Cl. M-8, Downgraded to B2, previously Baa2,
Cl. M-9, Downgraded to C, previously Baa3,
Cl. M-10, Downgraded to C, previously Ba1.
Issuer: RASC Series 2007-KS3 Trust
Cl. M-2S Currently Aa2 on review for possible downgrade,
Cl. M-3S Currently Aa3 on review for possible downgrade,
Cl. M-4, Downgraded to A2, previously A1,
Cl. M-5, Downgraded to Baa2, previously A2,
Cl. M-6, Downgraded to Baa3, previously A3,
Cl. M-7, Downgraded to Ba3, previously Baa1,
Cl. M-8, Downgraded to B3 on review for possible further
downgrade, previously Baa2,
Cl. M-9, Downgraded to Ca, previously Baa3.
Issuer: RASC Series 2007-KS4 Trust
Cl. M-2S Currently Aa2 on review for possible downgrade,
Cl. M-3S Currently Aa2 on review for possible downgrade,
Cl. M-4, Downgraded to A2, previously A1,
Cl. M-5, Downgraded to Baa2, previously A2,
Cl. M-6, Downgraded to Baa3, previously A3,
Cl. M-7, Downgraded to Ba3, previously Baa1,
Cl. M-8, Downgraded to B3 on review for possible further
downgrade, previously Baa2,
Cl. M-9, Downgraded to Ca, previously Baa3.
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
Gregory Bessermann
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653