Moody's takes negative rating actions on Bear Stearns Mortgage Funding Trust Option Arm deals issued in 2007
New York, January 15, 2008 -- Moody's Investors Service has downgraded the ratings of twenty four tranches
and has placed under review for possible downgrade the ratings of seven
tranches from five transactions issued by Bear Stearns Mortgage Funding
Trust in 2007. Three downgraded tranches remain on review for possible
downgrade. The collateral backing these classes primarily consists
of first lien, adjustable-rate negatively amortizing Alt-A
mortgage loans.
The ratings were downgraded, in general, based on higher than
anticipated rates of delinquency, foreclosure, and REO in
the underlying collateral relative to credit enhancement levels.
In its analysis Moody's has also applied its published methodology updates
to the non delinquent portion of the transactions.
Complete rating actions are as follows:
Bear Stearns Mortgage Funding Trust 2007-AR1
Cl. I-B-7, Downgraded to Baa1, previously
A2,
Cl. I-B-8, Downgraded to Baa2, previously
Baa1,
Cl. I-B-9, Downgraded to Baa3, previously
Baa2,
Cl. II-B-1 Currently Aa1, on review for possible
downgrade,
Cl. II-B-2 Currently Aa3, on review for possible
downgrade,
Cl. II-B-3, Downgraded to Baa2, previously
A3,
Cl. II-B-4, Downgraded to Ba1, previously
Baa1,
Cl. II-B-5, Downgraded to B3 on review for
possible further downgrade, previously Ba2,
Bear Stearns Mortgage Funding Trust 2007-AR2, Mortgage Pass-Through
Certificates, Series 2007-AR2
Cl. B-1 Currently Aa1, on review for possible downgrade,
Cl. B-2 Currently Aa3, on review for possible downgrade,
Cl. B-3, Downgraded to Baa2, previously A3,
Cl. B-4, Downgraded to Ba1, previously Baa1,
Cl. B-5, Downgraded to B3 on review for possible further
downgrade, previously Ba2,
Bear Stearns Mortgage Funding Trust 2007-AR3
Cl. I-B-7, Downgraded to Baa1, previously
A2,
Cl. I-B-8, Downgraded to Baa2, previously
Baa1,
Cl. I-B-9, Downgraded to Baa3, previously
Baa2,
Cl. II-B-2 Currently Aa3, on review for possible
downgrade,
Cl. II-B-3, Downgraded to A3, previously
A2,
Cl. II-B-4, Downgraded to Baa1, previously
A3,
Cl. II-B-5, Downgraded to Baa3, previously
Baa1,
Cl. II-B-6, Downgraded to B1, previously
Ba2,
Bear Stearns Mortgage Funding Trust 2007-AR4
Cl. II-B-1 Currently Aa1, on review for possible
downgrade,
Cl. II-B-2 Currently Aa3, on review for possible
downgrade,
Cl. II-B-3, Downgraded to Baa1, previously
A2,
Cl. II-B-4, Downgraded to Baa2, previously
A3,
Cl. II-B-5, Downgraded to Ba1, previously
Baa1,
Cl. II-B-6, Downgraded to B3 on review for
possible further downgrade, previously Ba2,
Bear Stearns Mortgage Funding Trust 2007-AR5
Cl. I-B-9, Downgraded to Baa3, previously
Baa2,
Cl. II-B-4, Downgraded to Baa2, previously
A2,
Cl. II-B-5, Downgraded to Baa3, previously
A3,
Cl. II-B-6, Downgraded to Ba1, previously
Baa1.
For further information please see www.Moodys.com
New York
Nicolas S. Weill
Managing Director - Chief Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Karandeep Bains
Associate Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653