New York, March 12, 2009 -- Moody's has taken certain rating actions on the subordinate bonds
issued by Structured Mortgage Asset Residential Trust (SMART) transactions
issued between 1991 and 1993. The actions are part of an ongoing
review of ABS and RMBS transactions.
These transactions are currently backed by small number of loans.
Should a default occur on any of those loans and the loss severity exceeds
the equity, protection from loss to the subordinate bond in the
transactions is completely dependant on payments made from pool policies
provided by Genworth Mortgage Insurance Corporation (Baa2) and PMI Mortgage
Insurance Co. (Ba3). Due to the low likelihood of default
given the long pay history of the remaining borrowers, Moody's
concludes that the joint probability of default and loss given default
is consistent with a Baa1 rating.
One transaction, the 1993-01, no longer has pool insurance
available to protect from possible loss. The deal has one loan
outstanding. Consequently the rating on the subordinate bond in
that deal is substantially lower at Ba2.
Moody's Investors Service completed its review of the underlying ratings
on the following insured certificates that are guaranteed by the Financial
Guaranty Insurance Company (FGIC). The underlying rating reflects
the intrinsic credit quality of the certificate in the absence of the
guarantee. The current rating on the below certificate is consistent
with Moody's practice of rating insured securities at the higher of the
guarantor's insurance financial strength rating and the underlying rating
based on Moody's modified approach to rating structured finance securities
wrapped by financial guarantors.
Complete rating actions are as follows:
Issuer: SMART 1991-01
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1991-05
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1991-07
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1991-08
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-05
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-06
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-07
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-08
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-09
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-10
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-11
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1992-12
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1993-01
Class G, downgraded to Ba2 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1993-02
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1993-03
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1993-04
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1993-05
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
Issuer: SMART 1993-06
Class G, Upgraded to Baa1 from Baa3, previously on Jun 20,
2008 placed on review direction uncertain
Guarantor: Financial Guaranty Insurance Company (Caa1, previously
on Dec 19, 2008 downgraded to Caa1 from B1)
New York
Debashish Chatterjee
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Aron Bergman
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's takes action on SMART transactions