New York, May 27, 2014 -- Moody's Investors Service has upgraded the ratings of 85 tranches and
downgraded the ratings of four tranches from 32 transactions issued by
various issuers, backed by Subprime mortgage loans.
Complete rating actions are as follows:
Issuer: HSBC Home Equity Loan Trust (USA) 2007-1
Cl. A-M, Downgraded to Aa2 (sf); previously on
Aug 28, 2013 Downgraded to Aa1 (sf)
Cl. A-S, Downgraded to Aa1 (sf); previously on
Aug 28, 2013 Confirmed at Aaa (sf)
Cl. M-1, Downgraded to A2 (sf); previously on
Aug 28, 2013 Confirmed at A1 (sf)
Cl. M-2, Downgraded to Baa2 (sf); previously
on Aug 28, 2013 Confirmed at A3 (sf)
Issuer: RAMP Series 2005-RS3 Trust
Cl. M-2, Upgraded to Baa2 (sf); previously on
Jul 11, 2013 Upgraded to Ba1 (sf)
Cl. M-3, Upgraded to Ba3 (sf); previously on
Jul 11, 2013 Upgraded to B2 (sf)
Cl. M-4, Upgraded to Caa1 (sf); previously on
Jul 11, 2013 Upgraded to Ca (sf)
Cl. M-5, Upgraded to Ca (sf); previously on Apr
6, 2010 Downgraded to C (sf)
Issuer: Bear Stearns Asset Backed Securities I Trust 2007-HE7
Cl. I-A-1, Upgraded to B2 (sf); previously
on Aug 7, 2013 Upgraded to Caa1 (sf)
Issuer: RAMP Series 2005-EFC1 Trust
Cl. M-3, Upgraded to Baa1 (sf); previously on
Jul 11, 2013 Upgraded to Baa2 (sf)
Cl. M-4, Upgraded to Ba1 (sf); previously on
Jul 11, 2013 Upgraded to B1 (sf)
Cl. M-5, Upgraded to Caa2 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-EFC2 Trust
Cl. M-3, Upgraded to A3 (sf); previously on Jul
11, 2013 Upgraded to Baa1 (sf)
Cl. M-4, Upgraded to Baa3 (sf); previously on
Jul 11, 2013 Upgraded to Ba2 (sf)
Cl. M-5, Upgraded to B3 (sf); previously on Aug
1, 2012 Confirmed at Caa2 (sf)
Issuer: RAMP Series 2005-EFC3 Trust
Cl. M-3, Upgraded to A3 (sf); previously on Jul
11, 2013 Upgraded to Baa2 (sf)
Cl. M-4, Upgraded to Baa3 (sf); previously on
Jul 11, 2013 Upgraded to Ba3 (sf)
Cl. M-5, Upgraded to Caa1 (sf); previously on
Jul 11, 2013 Upgraded to Ca (sf)
Cl. M-6, Upgraded to Ca (sf); previously on Apr
6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-EFC4 Trust
Cl. M-2, Upgraded to Baa1 (sf); previously on
Jul 11, 2013 Upgraded to Baa3 (sf)
Cl. M-3, Upgraded to Ba2 (sf); previously on
Jul 11, 2013 Upgraded to B2 (sf)
Cl. M-4, Upgraded to Caa2 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-EFC5 Trust
Cl. M-1, Upgraded to A3 (sf); previously on Jul
11, 2013 Upgraded to Baa1 (sf)
Cl. M-2, Upgraded to Ba1 (sf); previously on
Jul 11, 2013 Upgraded to B1 (sf)
Cl. M-3, Upgraded to Caa2 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-EFC6 Trust
Cl. M-1, Upgraded to A3 (sf); previously on Jul
11, 2013 Upgraded to Baa2 (sf)
Cl. M-2, Upgraded to Ba3 (sf); previously on
Jul 11, 2013 Upgraded to B3 (sf)
Cl. M-3, Upgraded to Caa3 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-RS1 Trust
Cl. A-I-4, Upgraded to Baa3 (sf); previously
on Jul 11, 2013 Upgraded to Ba2 (sf)
Cl. A-I-5, Upgraded to Ba3 (sf); previously
on Jul 11, 2013 Upgraded to B2 (sf)
Cl. A-I-6, Upgraded to Ba1 (sf); previously
on Jul 11, 2013 Upgraded to Ba3 (sf)
Cl. M-I-1, Upgraded to Ca (sf); previously
on Apr 6, 2010 Downgraded to C (sf)
Cl. M-II-1, Upgraded to Ba1 (sf); previously
on Aug 1, 2012 Upgraded to B1 (sf)
Issuer: RAMP Series 2005-RS2 Trust
Cl. M-2, Upgraded to A3 (sf); previously on Jul
11, 2013 Upgraded to Baa2 (sf)
Cl. M-3, Upgraded to Baa3 (sf); previously on
Jul 11, 2013 Upgraded to Ba3 (sf)
Cl. M-4, Upgraded to B3 (sf); previously on Jul
11, 2013 Upgraded to Caa2 (sf)
Issuer: RAMP Series 2005-RS4 Trust
Cl. M-2, Upgraded to A3 (sf); previously on Jul
11, 2013 Upgraded to Baa1 (sf)
Cl. M-3, Upgraded to Baa3 (sf); previously on
Jul 11, 2013 Upgraded to Ba2 (sf)
Cl. M-4, Upgraded to Ba3 (sf); previously on
Jul 11, 2013 Upgraded to B3 (sf)
Cl. M-5, Upgraded to Caa3 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-RS6 Trust
Cl. M-2, Upgraded to Baa1 (sf); previously on
Jul 11, 2013 Upgraded to Baa3 (sf)
Cl. M-3, Upgraded to Ba2 (sf); previously on
Jul 11, 2013 Upgraded to B2 (sf)
Cl. M-4, Upgraded to Caa2 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-RS7 Trust
Cl. A-3, Upgraded to Baa2 (sf); previously on
Jul 11, 2013 Upgraded to Ba1 (sf)
Cl. M-1, Upgraded to Ba3 (sf); previously on
Jul 11, 2013 Upgraded to B3 (sf)
Cl. M-2, Upgraded to Caa3 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2005-RS8 Trust
Cl. A-3, Upgraded to Baa2 (sf); previously on
Jul 11, 2013 Upgraded to Ba1 (sf)
Cl. M-1, Upgraded to B2 (sf); previously on Jul
11, 2013 Upgraded to Caa1 (sf)
Issuer: RAMP Series 2005-RZ3 Trust
Cl. M-2, Upgraded to Ba1 (sf); previously on
Jul 11, 2013 Upgraded to Ba3 (sf)
Cl. M-3, Upgraded to B2 (sf); previously on Aug
1, 2012 Upgraded to Caa2 (sf)
Cl. M-4, Upgraded to Caa3 (sf); previously on
Jul 15, 2011 Downgraded to C (sf)
Issuer: RAMP Series 2006-EFC2 Trust
Cl. A-3, Upgraded to Caa1 (sf); previously on
Apr 6, 2010 Downgraded to Caa2 (sf)
Cl. A-4, Upgraded to Caa3 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2006-NC2 Trust
Cl. A-2, Upgraded to B2 (sf); previously on Apr
6, 2010 Downgraded to Caa1 (sf)
Cl. A-3, Upgraded to Caa2 (sf); previously on
Apr 6, 2010 Downgraded to C (sf)
Issuer: RAMP Series 2006-RS4 Trust
Cl. A-3, Upgraded to Caa1 (sf); previously on
Apr 6, 2010 Downgraded to Caa2 (sf)
Cl. A-4, Upgraded to Caa2 (sf); previously on
Jan 9, 2013 Upgraded to Ca (sf)
Issuer: RAMP Series 2006-RZ2 Trust
Cl. A-2, Upgraded to Ba2 (sf); previously on
Dec 2, 2013 Upgraded to B1 (sf)
Cl. A-3, Upgraded to B1 (sf); previously on Dec
2, 2013 Upgraded to B3 (sf)
Issuer: RAMP Series 2006-RZ3 Trust
Cl. A-2, Upgraded to Baa2 (sf); previously on
Jul 15, 2011 Downgraded to Ba1 (sf)
Cl. A-3, Upgraded to Baa3 (sf); previously on
Jul 20, 2012 Confirmed at Ba2 (sf)
Issuer: RASC Series 2005-AHL1 Trust
Cl. M-1, Upgraded to Baa3 (sf); previously on
Jul 17, 2013 Upgraded to Ba2 (sf)
Issuer: RASC Series 2005-AHL3 Trust
Cl. A-2, Upgraded to Ba2 (sf); previously on
Dec 2, 2013 Upgraded to B1 (sf)
Cl. A-3, Upgraded to B3 (sf); previously on Dec
2, 2013 Upgraded to Caa2 (sf)
Issuer: RASC Series 2005-KS11 Trust
Cl. M-1, Upgraded to Ba1 (sf); previously on
Jul 17, 2013 Upgraded to Ba3 (sf)
Cl. M-2, Upgraded to Caa1 (sf); previously on
Jul 17, 2013 Upgraded to Caa3 (sf)
Issuer: RASC Series 2005-KS12 Trust
Cl. M-1, Upgraded to Ba1 (sf); previously on
Dec 2, 2013 Upgraded to Ba3 (sf)
Cl. M-2, Upgraded to Caa1 (sf); previously on
Dec 2, 2013 Upgraded to Caa2 (sf)
Cl. A-3, Upgraded to Baa1 (sf); previously on
Dec 2, 2013 Upgraded to Baa2 (sf)
Issuer: RASC Series 2005-KS3 Trust
Cl. M-4, Upgraded to A3 (sf); previously on Nov
13, 2013 Upgraded to Baa1 (sf)
Cl. M-5, Upgraded to Ba1 (sf); previously on
Nov 13, 2013 Upgraded to B1 (sf)
Cl. M-6, Upgraded to B3 (sf); previously on Nov
13, 2013 Upgraded to Caa2 (sf)
Issuer: RASC Series 2005-KS4 Trust
Cl. M-2, Upgraded to Baa3 (sf); previously on
Nov 13, 2013 Upgraded to Ba3 (sf)
Cl. M-3, Upgraded to B2 (sf); previously on Nov
13, 2013 Upgraded to Caa1 (sf)
Issuer: RASC Series 2005-KS5 Trust
Cl. M-4, Upgraded to Baa1 (sf); previously on
Nov 13, 2013 Upgraded to Baa2 (sf)
Cl. M-5, Upgraded to Ba1 (sf); previously on
Nov 13, 2013 Upgraded to B1 (sf)
Cl. M-6, Upgraded to B2 (sf); previously on Nov
13, 2013 Upgraded to Caa1 (sf)
Issuer: RASC Series 2005-KS7 Trust
Cl. M-3, Upgraded to Baa2 (sf); previously on
Jul 17, 2013 Upgraded to Ba1 (sf)
Cl. M-4, Upgraded to Ba3 (sf); previously on
Jul 17, 2013 Upgraded to B3 (sf)
Cl. M-5, Upgraded to Caa1 (sf); previously on
Jul 15, 2011 Upgraded to Ca (sf)
Issuer: RASC Series 2005-KS8 Trust
Cl. M-2, Upgraded to Baa1 (sf); previously on
Dec 2, 2013 Upgraded to Baa2 (sf)
Cl. M-3, Upgraded to Ba1 (sf); previously on
Dec 2, 2013 Upgraded to B1 (sf)
Cl. M-4, Upgraded to B2 (sf); previously on Dec
2, 2013 Upgraded to Caa1 (sf)
Cl. M-5, Upgraded to Caa3 (sf); previously on
Mar 5, 2013 Affirmed C (sf)
Issuer: RASC Series 2005-KS9 Trust
Cl. M-3, Upgraded to Baa3 (sf); previously on
Dec 2, 2013 Upgraded to Ba2 (sf)
Cl. M-4, Upgraded to B1 (sf); previously on Dec
2, 2013 Upgraded to Caa1 (sf)
Cl. M-5, Upgraded to Caa3 (sf); previously on
Mar 5, 2013 Affirmed C (sf)
Issuer: RASC Series 2006-KS5 Trust
Cl. A-3, Upgraded to B3 (sf); previously on Apr
6, 2010 Downgraded to Caa2 (sf)
Cl. A-4, Upgraded to Caa2 (sf); previously on
Jul 20, 2012 Upgraded to Ca (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
upgrades are a result of improving performance of the related pools and/or
faster pay-down of the bonds due to high prepayments/faster liquidations.The
downgrades are a result of deteriorating performance and/or structural
features resulting in higher expected losses for the bonds than previously
anticipated.
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.
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 6.3% in April 2014 from 7.5%
in April 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_SF368759
A list of updated estimated pool losses and recoveries 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_SF345728
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 includes an assessment of collateral characteristics and
performance to determine the expected collateral loss or a range of expected
collateral losses or cash flows to the rated instruments. As a
second step, Moody's estimates expected collateral losses or cash
flows using a quantitative tool that takes into account credit enhancement,
loss allocation and other structural features, to derive the expected
loss for each 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.
Siddharth Jain
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 $2.2 Billion of Subprime RMBS