New York, August 12, 2013 -- Moody's Investors Service has downgraded the rating of one tranche and
upgraded the ratings of eight tranches from two transactions backed by
Alt-A loans, issued by Morgan Stanley Mortgage Loan Trust
2007-3XS and 2005-6AR, respectively.
Complete rating actions are as follows:
Issuer: Morgan Stanley Mortgage Loan Trust 2005-6AR
Cl. 1-A-1, Upgraded to Baa2 (sf); previously
on Sep 4, 2012 Upgraded to Ba2 (sf)
Cl. 1-A-2, Upgraded to A2 (sf); previously
on Sep 4, 2012 Upgraded to Baa2 (sf)
Cl. 1-A-4, Upgraded to Ba1 (sf); previously
on Sep 4, 2012 Upgraded to B1 (sf)
Cl. 1-M-1, Upgraded to Ba3 (sf); previously
on Sep 4, 2012 Upgraded to B3 (sf)
Cl. 1-M-2, Upgraded to B2 (sf); previously
on Sep 4, 2012 Upgraded to Caa2 (sf)
Cl. 1-M-3, Upgraded to Caa2 (sf); previously
on Sep 4, 2012 Upgraded to Ca (sf)
Cl. 1-M-4, Upgraded to Caa3 (sf); previously
on Apr 26, 2010 Downgraded to C (sf)
Cl. 1-M-5, Upgraded to Ca (sf); previously
on Apr 26, 2010 Downgraded to C (sf)
Issuer: Morgan Stanley Mortgage Loan Trust 2007-3XS
Cl. 2-A-1-A, Downgraded to Baa1 (sf);
previously on Sep 4, 2012 Upgraded to A1 (sf)
RATINGS RATIONALE
The actions are primarily a result of the recent performance of the underlying
pools and reflect Moody's updated loss expectations on the pools.
The upgrades are a result of build-up in credit enhancement on
the bonds and stable performance of the underlying pool.
The principal methodology used in these ratings was "US RMBS Surveillance
Methodology" published in June 2013. Please see the Credit
Policy page on www.moodys.com for a copy of this methodology.
The primary source of assumption uncertainty is the uncertainty in our
central macroeconomic forecast and performance volatility due to servicer-related
issues. The unemployment rate fell from 8.2% in July
2012 to 7.4% in July 2013. Moody's forecasts an unemployment
central range of 7.0% to 8.0% for the 2013
year. Moody's expects house prices to continue to rise in 2013.
Performance of RMBS continues to remain highly dependent on servicer procedures.
Any change resulting from servicing transfers or other policy or regulatory
change can 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_SF338753
A list of updated estimated pool losses and sensitivity analysis is being
posted on an ongoing basis for the duration of this review period and
may be found at:
Excel: http://v3.moodys.com/page/viewresearchdoc.aspx?docid=PBS_SF198174
For more information please see www.moodys.com.
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.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
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.
Samuel G Ukrainsky
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
Deepika Kothari
VP - Sr Credit Officer/Manager
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 takes action on $137 Million of Alt-A RMBS issued by Morgan Stanley from 2005 to 2007