New York, November 25, 2013 -- Moody's Investors Service has upgraded the ratings of one tranche and
downgraded the ratings of 17 tranches from two transactions backed by
Alt-A loans, issued by Morgan Stanley and Credit Suisse First
Boston.
Complete rating actions are as follows:
Issuer: CSMC Mortgage-Backed Trust Series 2007-2
Cl. 2-A-1, Downgraded to Caa1 (sf); previously
on Oct 12, 2010 Confirmed at B3 (sf)
Cl. 2-A-2, Downgraded to Caa1 (sf); previously
on Oct 12, 2010 Confirmed at B3 (sf)
Cl. 2-A-3, Downgraded to C (sf); previously
on Oct 12, 2010 Downgraded to Ca (sf)
Cl. 2-A-4, Downgraded to B2 (sf); previously
on Oct 12, 2010 Downgraded to Ba3 (sf)
Cl. 2-A-5, Downgraded to Caa1 (sf); previously
on Oct 12, 2010 Upgraded to B1 (sf)
Cl. 3-A-4, Downgraded to Caa3 (sf); previously
on Oct 12, 2010 Confirmed at B3 (sf)
Cl. 3-A-5, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-6, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-7, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-8, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-9, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-10, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-11, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa1 (sf)
Cl. 3-A-13, Upgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to Caa3 (sf)
Cl. 3-A-15, Downgraded to Caa2 (sf); previously
on Oct 12, 2010 Downgraded to B3 (sf)
Cl. A-X, Downgraded to Caa1 (sf); previously
on Apr 10, 2013 Affirmed B2 (sf)
Cl. A-P, Downgraded to Caa1 (sf); previously
on Oct 12, 2010 Confirmed at B3 (sf)
Issuer: Morgan Stanley Mortgage Loan Trust 2006-17XS
Cl. A-1, Downgraded to Caa3 (sf); previously
on Aug 12, 2010 Downgraded to Caa2 (sf)
RATINGS RATIONALE
The actions are a result of the recent performance of the underlying pools
and reflect Moody's updated loss expectations on the pools. The
actions reflect the pro-rata pay nature of the bonds after credit
support depletion as well as actual realized losses on the tranches.
Additionally, in the case of the Class 3-A-13,
the Class 3-A-1 bond for which it was a loss support first
has paid down making it pro-rata with other group 3 seniors.
The principal methodology used in these ratings was "US RMBS Surveillance
Methodology" published in November 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 7.9% in October
2012 to 7.3% in October 2013. Moody's forecasts an
unemployment central range of 6.5% to 7.5%
for the 2014 year. Moody's expects house prices to continue to
rise in 2014. 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:
http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF348850
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/viewresearchdoc.aspx?docid=PBS_SF198174
For more information please see www.moodys.com.
REGULATORY DISCLOSURES
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 related to the monitoring of these transactions in the past
six months.
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 $152 Million of Alt-A RMBS issued by Morgan Stanley and CSFB from 2006-2007