Approximately $71 million in debt affected
New York, September 24, 2012 -- Moody's downgrades the ratings of 8 local housing finance agency deals
to Aa1(sf) from Aaa(sf), removing the deals under review for possible
downgrade. The rating actions follow the recent downgrades of Natixis
and Credit Agricole to A2/P-1 from Aa3/P-1.
1 Jefferson Parish Finance Authority, LA Single Family Mortgage
Revenue Refunding Bonds 2007C
2 Jefferson Parish Finance Authority, LA, Single Family Mortgage
Revenue Bonds 2006D
3 Jefferson Parish Finance Authority, LA, Single Family Mortgage
Revenue Bonds 2007B
4 Jefferson Parish Finance Authority, LA, Single Family Mortgage
Revenue Refunding Bonds 2006B
5 Tucson & Pima County Ind. Dev. Auth.,
AZ, Joint Single Family Mortgage Revenue Bonds, 2007 B
6 Manatee County Housing Finance Authority, FL Single Family Mortgage
Revenue Refunding Bonds 2002, Sub-Ser 3 & 4
7 Manatee County Housing Finance Authority, FL Single Family-MBS2002,
subseries 1 & 2
8 Clay County Housing Finance Authority, FL, Single Family
Mortgage Revenue Bonds (Multi-County Program), 2007 A-1
& A-2
RATING RATIONALE
Natixis and Credit Agricole provide the Guaranteed Investment Contracts
(GIC) for these transactions. While the mortgages are backed by
Government Sponsored Enterprises (GSE's), the rating of the bonds
reflects the rating of GIC Providers. The GIC may be subject to
increased repayment risk as a result of the reduced credit quality of
the GIC Providers. In the event of a nonpayment of the GIC there
may be insufficient funds to pay the bonds at that time.
WHAT COULD CHANGE THE RATING UP:
- Upgrade to the rating of the respective GIC Provider
WHAT COULD CHANGE THE RATING DOWN:
- Downgrade to the rating of the respective GIC Provider.
- Deterioration of the asset to debt ratio.
- Downgrade of the rating of the US government
The principal methodology used in this rating was Strength in Structure:
Moody's Approach to Rating Single-Family Housing Bonds Secured
by Mortgage-Backed Securities published in October 1998.
Please see the Credit Policy page on http://www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are endorsed by Moody's
Investors Service Ltd., One Canada Square, Canary Wharf,
London E 14 5FA, UK, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that has issued a particular Credit Rating is available on http://www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on http://www.moodys.com.
Information sources used to prepare the rating are the following:
parties involved in the ratings and public information.
Moody's did not receive or take into account a third-party
assessment on the due diligence performed regarding the underlying assets
or financial instruments in this transaction.
Moody's considers the quality of information available on the rated
entity, obligation or credit satisfactory for the purposes of issuing
a rating.
Moody's adopts all necessary measures so that the information it
uses in assigning a 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 the ratings disclosure page on www.moodys.com
for general disclosure on potential conflicts of interests.
Please see the ratings disclosure page on www.moodys.com
for information on (A) MCO's major shareholders (above 5%) and
for (B) further information regarding certain affiliations that may exist
between directors of MCO and rated entities as well as (C) the names of
entities that hold ratings from MIS that have also publicly reported to
the SEC an ownership interest in MCO of more than 5%. A
member of the board of directors of this rated entity may also be a member
of the board of directors of a shareholder of Moody's Corporation;
however, Moody's has not independently verified this matter.
Please see Moody's Rating Symbols and Definitions on the Rating Process
page on www.moodys.com for further information on the meaning
of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history.
The date on which some ratings were first released goes back to a time
before Moody's ratings were fully digitized and accurate data may not
be available. Consequently, Moody's 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 www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Brendan Weber
Associate Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Florence Zeman
Associate Managing Director
Public Finance Group
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's downgrades the ratings of 8 local housing finance agency transactions to Aa1(sf) from Aaa(sf) due to the downgrade of Natixis and Credit Agricole to A2/P-1 from Aa3/P-1