New York, September 26, 2013 -- Moody's Investors Service has upgraded the ratings of seven tranches and
downgraded the ratings of nine tranches from ten transactions backed by
subprime mortgage loans issued by various trusts.
Complete rating actions are as follows:
Issuer: Amortizing Residential Collateral Trust Mortgage Pass-Through
Certificates, Series 2002-BC2
Cl. A, Upgraded to B1 (sf); previously on Mar 18,
2011 Downgraded to B3 (sf)
Cl. M1, Upgraded to Ca (sf); previously on Mar 18,
2011 Downgraded to C (sf)
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-HE11
Cl. A-2, Downgraded to Aa2 (sf); previously on
Nov 23, 2008 Confirmed at Aaa (sf)
Financial Guarantor: Assured Guaranty Municipal Corp (Downgraded
to A2, Outlook Stable on Jan 17, 2013)
Cl. A-3, Downgraded to Aa2 (sf); previously on
Nov 23, 2008 Confirmed at Aaa (sf)
Financial Guarantor: Assured Guaranty Municipal Corp (Downgraded
to A2, Outlook Stable on Jan 17, 2013)
Issuer: GE Capital Mtg Services Inc 1997-HE1
A4, Downgraded to Caa2 (sf); previously on Oct 11, 2012
Downgraded to B3 (sf)
A5, Downgraded to Caa2 (sf); previously on Oct 11, 2012
Downgraded to B3 (sf)
Issuer: IMC Home Equity Loan Trust 1997-3
A-7, Downgraded to Ba1 (sf); previously on Mar 9,
2011 Downgraded to Baa1 (sf)
Issuer: IMC Home Equity Loan Trust 1998-1
A-5, Downgraded to Ba1 (sf); previously on Mar 9,
2011 Downgraded to Baa3 (sf)
A-6, Downgraded to Ba1 (sf); previously on Mar 9,
2011 Downgraded to Baa2 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2004-5
Cl. M-1, Upgraded to Ba3 (sf); previously on
Mar 18, 2011 Downgraded to B3 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2005-2
Cl. M-1, Upgraded to B3 (sf); previously on Jul
21, 2010 Downgraded to Caa2 (sf)
Cl. AV-1A, Upgraded to Baa1 (sf); previously
on Oct 12, 2012 Confirmed at Baa2 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2005-D
Cl. A-6, Upgraded to Baa2 (sf); previously on
Jul 21, 2010 Downgraded to Ba3 (sf)
Issuer: People's Choice Home Loan Securities Trust 2005-2
Cl. M2, Downgraded to Ba1 (sf); previously on Mar 4,
2013 Confirmed at Baa2 (sf)
Cl. M3, Upgraded to B3 (sf); previously on Mar 4,
2013 Confirmed at Caa2 (sf)
Issuer: Wells Fargo Home Equity Trust 2004-1
Cl. 1-A, Downgraded to A2 (sf); previously on
Mar 13, 2011 Downgraded to Aa3 (sf)
RATINGS RATIONALE
The actions reflect Moody's updated loss expectations on the underlying
collateral pools. The upgrades are a result of improved credit
performance of the related pools and/or buildup of securities' credit
enhancement as the transaction seasons. Downgrades reflect higher
pool losses and/or reductions in bond specific credit enhancement.
The downgrade of Cl. M2 issued by People's Choice Home Loan Securities
Trust 2005-2 is primarily the result of recent interest shortfalls
that are unlikely to be recouped because of a weak interest shortfall
reimbursement mechanism on the bonds.
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 June
2012 to 7.6% in June 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://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF343176
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:
http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF237255
and http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF198689
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.
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.
Meng Bai Wang
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
Eric Fellows
VP - Senior Credit Officer
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 $151 Million of Subprime RMBS issued from 1997-2005