NOTE: on February 04, 2015, the press release was corrected as follows: In the Ratings Rationale section, added the following as the second sentence of the first paragraph: “The ratings downgraded are due to the weaker performance of the underlying collateral and the erosion of enhancement available to the bonds.” Revised release follows.
New York, August 14, 2014 -- Moody's Investors Service has upgraded the ratings of 19 tranches and
downgraded the ratings of three tranches backed by Manufactured Housing
RMBS loans, issued by miscellaneous issuers. In addition,
Moody's has upgraded the rating of two tranches issued by Lehman Manufactured
Housing Asset-Backed Trust 1998-1. The resecuritization
is backed by several bonds issued by Green Tree Financial Corporation
Manufactured Housing deals from 1995 to 1997.
Complete rating actions are as follows:
Issuer: Access Financial MH Contract Trust 1996-1
Cl. A-6, Downgraded to Caa2 (sf); previously
on Sep 27, 2013 Downgraded to B3 (sf)
Issuer: ACE Securities Corp. Manufactured Housing Trust 2003-MH1
Cl. M-2, Downgraded to Baa1 (sf); previously
on Jul 25, 2003 Assigned A2 (sf)
Issuer: Conseco Finance Securitization Corp. Series 2001-4
Class A-4, Upgraded to Baa3 (sf); previously on Sep
27, 2013 Upgraded to Ba2 (sf)
Issuer: GreenPoint Manufactured Housing Contract Trust 2001-1
Cl. I M-2, Downgraded to Ba2 (sf); previously
on Mar 30, 2009 Downgraded to Baa3 (sf)
Issuer: IndyMac MH Contract 1997-1
Cl. A-2, Upgraded to B1 (sf); previously on Sep
27, 2013 Upgraded to B3 (sf)
Cl. A-3, Upgraded to B1 (sf); previously on Sep
27, 2013 Upgraded to B3 (sf)
Cl. A-4, Upgraded to B1 (sf); previously on Sep
27, 2013 Upgraded to B3 (sf)
Cl. A-5, Upgraded to B1 (sf); previously on Sep
27, 2013 Upgraded to B3 (sf)
Cl. A-6, Upgraded to B1 (sf); previously on Sep
27, 2013 Upgraded to B3 (sf)
Issuer: Lehman ABS Manufactured Housing Contract Trust 2002-A
Cl. B-2, Upgraded to Baa3 (sf); previously on
Sep 18, 2013 Upgraded to Ba2 (sf)
Issuer: Lehman Manufactured Housing Asset-Backed Trust 1998-1
I-A1, Upgraded to A3 (sf); previously on Aug 10,
2009 Downgraded to Baa1 (sf)
I-IO, Upgraded to A3 (sf); previously on Dec 5,
2012 Upgraded to Baa1 (sf)
Issuer: Oakwood Mortgage Investors, Inc., Series
1998-D
A, Upgraded to Baa2 (sf); previously on Dec 21, 2004
Downgraded to Ba1 (sf)
A-1 ARM, Upgraded to Baa2 (sf); previously on Dec 21,
2004 Downgraded to Ba1 (sf)
Issuer: OMI Trust 2001-B
Cl. A-2, Upgraded to Ba1 (sf); previously on
Sep 30, 2013 Upgraded to Ba3 (sf)
Cl. A-3, Upgraded to Ba1 (sf); previously on
Sep 30, 2013 Upgraded to Ba3 (sf)
Cl. A-4, Upgraded to Ba1 (sf); previously on
Sep 30, 2013 Upgraded to Ba3 (sf)
Issuer: OMI Trust 2002-A
Cl. A-1, Upgraded to B1 (sf); previously on Mar
30, 2009 Downgraded to B3 (sf)
Cl. A-2, Upgraded to B1 (sf); previously on Mar
30, 2009 Downgraded to B3 (sf)
Cl. A-3, Upgraded to B1 (sf); previously on Mar
30, 2009 Downgraded to B3 (sf)
Cl. A-4, Upgraded to B1 (sf); previously on Mar
30, 2009 Downgraded to B3 (sf)
Issuer: OMI Trust 2002-C
Cl. A-1, Upgraded to B2 (sf); previously on Mar
30, 2009 Downgraded to Caa1 (sf)
Issuer: Origen Manufactured Housing Contract Senior/Subordinate
Asset-Backed Certificates, Series 2001-A
Cl. A-6, Upgraded to Baa3 (sf); previously on
Sep 18, 2013 Upgraded to Ba2 (sf)
Cl. A-7, Upgraded to Baa3 (sf); previously on
Sep 18, 2013 Upgraded to Ba2 (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 ratings downgraded are due to the weaker performance of the underlying collateral and the erosion of enhancement available to the bonds. The
upgrade rating actions are primarily due to the build-up in credit
enhancement due to sequential pay structures and non-amortizing
subordinate bonds. Performance has remained generally stable from
our last review.
The actions on the resecuritization reflect the recent performance of
the underlying pools backing Lehman Manufactured Housing Asset-Backed
Trust 1998-1 and Moody's updated loss expectations on the underlying
Manufactured Housing RMBS bonds.
The principal methodology used in the ratings referenced above,
except Lehman Manufactured Housing Asset-Backed Trust 1998-1,
was "US RMBS Surveillance Methodology" published in November
2013. The principal methodology used in rating Lehman Manufactured
Housing Asset-Backed Trust 1998-1 was "Moody's Approach
to Rating Resecuritizations" published in February 2014. Please
see the Credit Policy page on www.moodys.com for a copy
of these methodologies.
Factors that would lead to an upgrade or downgrade of the rating:
Ratings in the US RMBS sector remain exposed to the high level of macroeconomic
uncertainty, and in particular the unemployment rate. The
unemployment rate fell to 6.1% in June 2014 from 7.5%
in June 2013. Moody's forecasts an unemployment central range of
6.5% to 7.5% for the 2014 year. Deviations
from this central scenario could lead to rating actions in the sector.
House prices are another key driver of US RMBS performance. Moody's
expects house prices to continue to rise in 2014. Lower increases
than Moody's expects or decreases could lead to negative rating
actions.
Finally, 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_SF377276
A list of updated estimated pool losses is being posted on an ongoing
basis for the duration of this review period and may be found at:
Excel: http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF336175
For more information please see www.moodys.com.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions of the disclosure form.
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.
The analysis relies on an assessment of collateral characteristics to
determine the collateral loss distribution, that is, the function
that correlates to an assumption about the likelihood of occurrence to
each level of possible losses in the collateral. As a second step,
Moody's evaluates each possible collateral loss scenario using a
model that replicates the relevant structural features to derive payments
and therefore the ultimate potential losses for each rated instrument.
The loss a rated instrument incurs in each collateral loss scenario,
weighted by assumptions about the likelihood of events in that scenario
occurring, results in the expected loss of the rated instrument.
As the section on loss and cash flow analysis describes, Moody's
quantitative analysis entails an evaluation of scenarios that stress factors
contributing to sensitivity of ratings and take into account the likelihood
of severe collateral losses or impaired cash flows. Moody's
weights the impact on the rated instruments based on its assumptions of
the likelihood of the events in such scenarios occurring.
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.
Ilana J Fried
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 $177 Million of Manufactured Housing RMBS issued from 1996 to 2003