New York, May 07, 2013 -- Moody's Investors Service has placed on review twelve tranches from two
Ameriquest RMBS transactions, backed by Subprime mortgage loans.
Complete rating actions are as follows:
Issuer: Ameriquest Mortgage Securities Inc., Series
2003-13
Cl. AF-5, A2 (sf) Placed Under Review Direction Uncertain;
previously on May 4, 2012 Confirmed at A2 (sf)
Cl. AF-6, A1 (sf) Placed Under Review Direction Uncertain;
previously on May 4, 2012 Confirmed at A1 (sf)
Cl. AV-1, A2 (sf) Placed Under Review Direction Uncertain;
previously on Mar 29, 2011 Downgraded to A2 (sf)
Cl. M-1, B1 (sf) Placed Under Review Direction Uncertain;
previously on Mar 29, 2011 Downgraded to B1 (sf)
Cl. M-2, Caa3 (sf) Placed Under Review Direction Uncertain;
previously on Mar 29, 2011 Downgraded to Caa3 (sf)
Issuer: Ameriquest Mortgage Securities Inc., Series
2005-R9
Cl. A-1, Ba1 (sf) Placed Under Review Direction Uncertain;
previously on Jul 18, 2011 Downgraded to Ba1 (sf)
Cl. A-2B, Ba2 (sf) Placed Under Review Direction Uncertain;
previously on Jul 18, 2011 Downgraded to Ba2 (sf)
Cl. A-2C, Ba2 (sf) Placed Under Review Direction Uncertain;
previously on Jul 18, 2011 Downgraded to Ba2 (sf)
Cl. AF-3, Aaa (sf) Placed Under Review for Possible
Downgrade; previously on Apr 14, 2010 Upgraded to Aaa (sf)
Cl. AF-4, Aaa (sf) Placed Under Review for Possible
Downgrade; previously on Apr 14, 2010 Upgraded to Aaa (sf)
Cl. AF-5, Aa3 (sf) Placed Under Review Direction Uncertain;
previously on Jul 18, 2011 Downgraded to Aa3 (sf)
Cl. AF-6, Aa1 (sf) Placed Under Review Direction Uncertain;
previously on Jul 18, 2011 Downgraded to Aa1 (sf)
RATINGS RATIONALE
The rating actions reflect errors in the Structured Finance Workstation
(SFW) cash flow models previously used by Moody's in rating these
transactions, specifically in the principal distribution amount
calculation in Ameriquest 2003-13 and in the excess spread calculation
in Ameriquest 2005-R9 .
The methodologies used in these ratings were "Moody's Approach to Rating
US Residential Mortgage-Backed Securities" published in December
2008, "Pre-2005 US RMBS Surveillance Methodology" published
in January 2012, and "2005—2008 US RMBS Surveillance
Methodology" published in July 2011. Please see the Credit
Policy page on www.moodys.com for a copy of these methodologies.
The primary sources of assumption uncertainty are our central macroeconomic
forecast and performance volatility as a result of servicer-related
activity such as modifications. The unemployment rate fell from
8.1% in April 2012 to 7.5% in April 2013.
Moody's forecasts a unemployment central range of 7.0% to
8.0% for the 2013 year. Moody's expects housing prices
to continue to rise in 2013. Performance of RMBS continues to remain
highly dependent on servicer activity such as modification-related
principal forgiveness and interest rate reductions. Any change
resulting from servicing transfers or other policy or regulatory change
can also impact the performance of these transactions.
A list of these actions including CUSIP identifiers may be found at:
Excel: http://moodys.com/viewresearchdoc.aspx?docid=PBS_SF327704
REGULATORY DISCLOSURES
Moody's received and took into account one or more third party assessments
on the due diligence performed regarding the underlying assets or financial
instruments in these transactions and the assessments had a neutral impact
on the rating.
In conducting surveillance of these credits, Moody's considered
performance data contained in servicer and remittance reports.
Moody's obtains servicer reports on these transactions on a periodic basis,
at least annually.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain 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 certain 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 certain 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 www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
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.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Edward Hou
Associate Analyst
Structured 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
Bruce D. Fabrikant
Senior Vice President
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
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 places on review $277 Million of Subprime RMBS Issued by Ameriquest