Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ 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 inform​ation 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

1.            Unless 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.               

2.            You 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 Information.

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.​​​​

I AGREE
Rating Action:

Moody's downgrades five certificates from Su Casita Mexican RMBS

 The document has been translated in other languages

Global Credit Research - 11 Jan 2011

Mexico, January 11, 2011 -- Moody's de México (Moody's) has downgraded five certificates from Mexican RMBS issued by Hipotecaria Su Casita, S.A. de C.V. Sociedad Financiera de Objeto Múltiple E.N.R. ("Su Casita"). The underlying collateral consists of first-lien, fixed-rate mortgage loans denominated in UDIS and granted primarily to low-income borrowers in Mexico. This concludes the review for possible downgrade that was initiated on September 15, 2010.

Originator and Servicer: Hipotecaria Su Casita, S.A. de C.V. Sociedad Financiera de Objeto Múltiple E.N.R.

Issuer: The Bank of New York Mellon, S.A. Institución de Banca Múltiple, acting solely as trustee.

-- Class A-2 BRHCCB 07-2U, rating downgraded to B1.mx (sf) from Ba3.mx (sf) (Mexican National Scale); B3 (sf) (Global Scale, Local Currency) rating confirmed.

-- Class B BRHSCCB 06-6U, ratings downgraded to B1.mx (sf) from A2.mx (sf) (Mexican National Scale) and to B3 (sf) from Ba2 (sf) (Global Scale, Local Currency).

-- Class B BRHSCCB 06-4U, ratings downgraded to Caa2.mx (sf) from B1.mx (sf) (Mexican National Scale) and to Caa2 (sf) from B3 (sf) (Global Scale, Local Currency).

Issuer: HSBC México, S.A. Institución de Banca Múltiple, Grupo Financiero HSBC, División Fiduciaria, acting solely as trustee.

-- Class A-2 BRHCCB 08-2U, ratings downgraded to Ba2.mx (sf) from A1.mx (sf) (Mexican National Scale) and to B2 (sf) from Ba1 (sf) (Global Scale, Local Currency).

-- Class B BRHCCB 08-3U, ratings downgraded to Ca.mx (sf) from Caa1.mx (sf) (Mexican National Scale) and to Ca (sf) from Caa1 (sf) (Global Scale, Local Currency).

RATINGS RATIONALE

Today's downgrades were based on the continuing deterioration of the collateral's performance and Moody's updated projection of lifetime cumulative gross defaults and expected losses on the pools. These projections consider an additional stress factor to account for possible further deterioration related to servicing quality as a result of Su Casita's operational restructuring and the possibility for disruptions following a possible servicing transfer.

In addition, the BRHCCB 07-2U Class A-2 certificates benefit from a financial guaranty provided by MBIA de México, S.A. de C.V. (B3 and B1.mx insurance financial strength ratings) which covers timely payment of interest and ultimate payment of principal on the certificates. The BRHCCB 07-2U Class A-2 certificates' B3 (sf) and B1.mx (sf) ratings are in-line with MBIA de México, S.A. de C.V.'s B3 and B1.mx insurance financial strength ratings. The certificates' current ratings are consistent with Moody's practice of rating structured finance securities wrapped by financial guarantors at the higher of (1) the guarantor's insurance financial strength rating and (2) the underlying rating (reflecting the intrinsic credit quality of securities absent the guarantee).

As of December 2010, delinquencies greater than 90 days, including accumulated real estate owned (REO), as a percent of the original pool balance for each of the underlying pools were as follows:

-- BRHCCB 08-2U & BRHCCB 08-3U (Classes A-2 and B2): 25.0% after 33 months since closing, versus 17.9% as of 12 months ago.

-- Class A-2 BRHCCB 07-2U: 36.9% after 39 months since closing, versus 22.6% as of 12 months ago.

-- Class B BRHSCCB 06-6U: 12.1% after 53 months since closing, versus 9.2% as of 12 months ago.

-- Class B BRHSCCB 06-4U: 18.8% after 54 months since closing, versus 17.1% as of 12 months ago.

Accumulated net losses in each transaction, however, represented less than 1% of the original pool balances given the relatively low level of reported REO sales and recoveries to date.

Further, the transactions have relatively high outstanding pool balances (including REOs) ranging between 61% and 84% of the original balances. Given the transactions' weak performance trends to date and their high pool factors, Moody's expects significantly higher lifetime cumulative gross defaults as a percent of the original pools as compared to the level of defaults observed to date.

Moody's projected lifetime cumulative gross defaults in each transaction is as follows:

-- BRHCCB 08-2U & BRHCCB 08-3U (Class A-2 & B): 49% of original balance, or 59% of current balance.

-- Class A-2 BRHCCB 07-2U: 61% of original balance, or 73% of current balance.

-- Class B BRHSCCB 06-6U: 23% of original balance, or 38% of current balance.

-- Class B BRHSCCB 06-4U: 28% of original balance, or 45% of current balance.

After estimating projected lifetime gross default rates as a percent of the current pool balances including REOs, Moody's determined the pool expected losses by applying a severity of loss assumption on the projected defaulted loan balance (assumed severities range between 47-62% across the four transactions). Moody's updated expected net loss projections are as follows:

-- BRHCCB 08-2U & BRHCCB 08-3U (Classes A-2 and B2): 28% of current balance.

-- Class A-2 BRHCCB 07-2U: 45% of current balance.

-- Class B BRHSCCB 06-6U: 19% of current balance.

-- Class B BRHSCCB 06-4U: 23% of current balance.

Moody's then compares these net loss projections with the estimated lifetime available credit enhancement by certificate (including any subordination, overcollateralization, and remaining excess spread), which is as follows:

-- Class A-2 BRHCCB 08-2U: 26% of current balance.

-- Class B BRHCCB 08-3U: 15% of current balance.

-- Class A-2 BRHCCB 07-2U: 33% of current balance.

-- Class B BRHSCCB 06-6U: 19% of current balance.

-- Class B BRHSCCB 06-4U: 21% of current balance.

Regarding the variability of the BRHCCB 07-2U Class A-2 certificates' B3 (sf) rating, if Moody's were to downgrade MBIA de México, S.A. de C.V.'s insurance financial strength rating by one notch to Caa1 from B3, the BRHCCB 07-2U Class A-2 certificates' would also likely experience a one-notch downgrade to Caa1 (sf).

Regarding the variability of the ratings of Class B BRHCCB 08-3U downgraded to Ca (sf)/Ca.mx (sf), Moody's notes that as of this date it does not foresee further rating downgrades. Certificates with expected recoveries of 35% to 65% are generally rated Ca (sf), while certificates are generally rated C (sf) if their expected recoveries are below 35%. However, a one notch benefit is generally applied for at risk Mexican RMBS certificates that do not experience write-downs in principal balance and are expected to continue receiving coupon payments for many years, as is the case for the affected certificates. As a result, Moody's does not foresee further ratings downgrades on the affected certificates under this approach.

Regarding the variability of the Class B BRHSCCB 06-6U, Class B BRHSCCB 06-4U and the Class A-2 BRHCCB 08-2U ratings, if Moody's were to instead assume the following cumulative gross defaults as a percent of the current pool balance, the certificates' would also likely experience a one-notch downgrade:

-- Class B BRHSCCB 06-6U, 41% (instead of 38%).

-- Class B BRHSCCB 06-4U, 49% (instead of 45%).

-- Class A-2 BRHCCB 08-2U, 61% (instead of 59%).

The primary sources of assumption uncertainty are related to the macroeconomic environment, the timing of recovery of the Mexican economy and labor market, the severity of loss assumption given the limited market data related to historical recoveries for REOs, and Su Casita's ultimate strategic direction and solvency and the extent of any potential servicing disruptions.

The principal methodology used this rating was "Moody's Approach to Monitoring Residential Mortgage-Backed Securitizations in Mexico" published in August 2009. Other methodologies and factors that may have been considered can also be found on Moody's website.

Moody's also considered that a loan servicer's capabilities can have a significant effect - either positive or negative - on realized loss levels in residential mortgage loan securitizations. Moody's assesses a servicer's ability to affect residential mortgage losses today and into the future. A servicer's financial stability could negatively affect its ability to properly perform its duties as primary servicer of securitized mortgage loans. Furthermore, any negative impact on the servicing function may in turn adversely affect the performance of the loans serviced by the company.

In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of these transactions in the past six months.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings and public information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

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.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
Karen Ramallo
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Maria Muller
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700

Moody's downgrades five certificates from Su Casita Mexican RMBS
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.