Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's takes rating actions on Su Casita Mexican mortgage-backed securitizations

 The document has been translated in other languages

09 Oct 2009

Mexico City, October 09, 2009 -- Moody's de México (Moody's) has placed on review for possible downgrade the Baa1 global local currency ratings and Aaa.mx national scale ratings of seven certificates from seven residential mortgage-backed securitizations (RMBS) issued by Hipotecaria Su Casita, S.A. de C.V. Sociedad Financiera de Objeto Múltiple E.N.R. ("Su Casita"): BRHSCCB 03U, BRHSCCB 05U, BRHSCCB 06, BRHSCCB 06-2, BRHSCCB 07, BRHCCB 07U, and BRHCCB 08U. These rating actions were prompted by continuing concerns about the accuracy and consistency of the reported delinquency percentages in Su Casita's monthly servicing reports.

Moody's has also downgraded three certificates from two Su Casita RMBS securitizations. BRHSCCB 06-3U was downgraded to Baa3 from Baa1 (Global Scale, Local Currency) and to Aa2.mx from Aaa.mx (National Scale); BRHSCCB 06-4U was downgraded to B3 from Ba2 (Global Scale, Local Currency) and to B1.mx from A2.mx (National Scale); and BRHCCB 07-2U was downgraded to B3 from Ba3 (Global Scale, Local Currency) and to Ba3.mx from Baa1.mx (National Scale Rating). All ratings remain on review for downgrade. The downgrades were based on the continuing deterioration of the collateral's performance and our resulting updated lifetime loss expectations. These three certificates also remain on review for possible downgrade because of the concerns noted above regarding the accuracy and consistency of the reported delinquencies.

The mortgage pools consist of first-lien, fixed-rate loans denominated in UDIS and granted primarily to low-income borrowers ("interés social").

For additional details related to today's rating actions, please refer to Moody's special comment titled "Performance Update: Hipotecaria Su Casita's Mexican RMBS", published on October 8, 2009.

RATIONALE FOR REVIEWS FOR DOWNGRADE

With today's rating actions, all of Su Casita's Moody's-rated RMBS certificates are on review for possible downgrade. In May 2009, Moody's had placed the global and national scale ratings of certain certificates from six Su Casita's mortgage-backed transactions on review for possible downgrade as a result of concerns about the sudden deterioration in loan performance in February 2009 in both the 90+ day delinquency bucket and in the "current" bucket.

More specifically, Moody's observed a considerable deterioration in the reported percentage of the pools that were "current", or 0 months past due, between January and February 2009. The percentage of "current" loans, which prior to February 2009 typically had been greater than 75% or 80% in any given month, dropped sharply in February for all Su Casita transactions, to as low as 48% of the pool in one case and below 60% in most other cases. The percentage of current loans has not reverted to the pre-February 2009 levels. In addition, between January and February 2009 a larger than expected percentage of loans migrated into more serious delinquency buckets. This level of pool deterioration has not occurred in other Mexican RMBS transactions rated by Moody's.

During the ongoing review period, Moody's will continue to work with the servicer to understand the drivers of this sudden and sharp deterioration in the "current" bucket across all Su Casita transactions. This trend raises general concerns about the accuracy of the servicer's delinquency reporting, the consistency of the method used to determine delinquency status, and the specter of increased losses if the large pipeline of delinquent loans ultimately defaults. Moody's has also raised questions about certain data anomalies, particularly the fact that despite the significant up-tick in delinquencies, the reported interest collections across pools have not declined.

RATIONALE FOR DOWNGRADES

The downgrade rating actions are primarily based on the weak historical performance of the mortgage portfolios backing the transactions and Moody's updated projected lifetime cumulative gross defaults and expected losses on the pools. The underlying pools for each of the two downgraded transactions have displayed a sharp ramp-up in 90+ day delinquencies that is beyond Moody's initial expectations after adjusting for the transactions' seasoning.

The recent month-to-month performance deterioration has been considerable, in particular for BRHCCB 07-2U, which had 90+ day delinquencies (including REOs) almost double over a 6-month period. As of February 2009, 90+ day delinquencies increased significantly in both deals and at a more rapid rate than in prior periods. As a result, Moody's increased its default projections on both pools. Moody's determines the projected default rates by linearly extrapolating the historical trends in the pools' default rate over the most recent nine months. Moody's notes that realized losses to date represent less than 0.5% of the original pool balance in both cases given the relatively low number of reported REO sales to date.

For these transactions, Moody's expects significantly higher lifetime cumulative gross defaults as a percentage of the original pool as compared to the level of gross defaults observed to date. This is based on the weak performance trends to date, the relatively short period of time since the transactions' closing dates, and the relatively high pool factors for each of the transactions (90% for BRHCCB 07-2U and 69% for BRHSCCB 06-3U/06-4U). After estimating projected lifetime gross default rates as a percentage of the current pool balance, Moody's determines the expected net losses by applying a severity of loss assumption on the projected defaulted loan balance.

BRHSCCB 06-3U and BRHSCCB 06-4U

As of September 1, 2009, delinquencies greater than 90 days, including real estate owned (REO), as a percentage of the original pool balance for the BRHSCCB 06-3U/06-4U transaction, were 14.7% versus 11.0% as of six months ago. The transaction has a seasoning of 38 months and a pool factor of 69%.

Moody's estimates lifetime cumulative gross defaults of approximately 31% and an average severity of loss of 56%, which results in an updated expected loss projection of 17% as a percentage of the original pool balance. This translates into an expected loss projection of approximately 25% of the outstanding pool balance (or 17% divided by the pool factor of 69%). The expected loss projection of 25% of the outstanding pool compares with approximately 32% of estimated remaining lifetime credit enhancement for the Class A BRHSCCB 06-3U certificate and with approximately 22% of estimated remaining lifetime credit enhancement for the Class B BRHSCCB 06-4U certificate.

BRHCCB 07-2U

As of September 1, 2009, 90+ day delinquencies, including real estate owned (REO), as a percentage of the original pool balance, were 18.4% versus 9.5% as of six months ago. The transaction has a seasoning of 23 months and a pool factor of 90%.

Moody's estimates lifetime cumulative gross defaults of approximately 51% and an average severity of loss of 67%, resulting in an updated expected loss projection of 34% as a percentage of the original pool balance. This translates into an expected loss projection of approximately 38% as a percentage of the outstanding pool balance (or 34% divided by the pool factor of 90%). The expected loss projection of 38% of the outstanding pool compares with approximately 33% of estimated remaining lifetime credit enhancement for the Class A-2 BRHCCB 07-2U certificate.

MONITORING METHODOLOGY

The ratings on the certificates are based on the principal methodology "Moody's Approach to Monitoring Residential Mortgage-Backed Securitizations in Mexico" published August 31, 2009, and available on www.moodys.com in the Ratings Methodologies sub-directory under the Research and Ratings tab. Other methodologies and factors that may have been considered can also be found in the Rating Methodologies sub-directory on Moody's website. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

RATING ACTION

The complete rating action is as follows:

Originator and Servicer: Hipotecaria Su Casita, S.A. de C.V. Sociedad Financiera de Objeto Múltiple E.N.R.

Issuer: The Bank of New York Mellon, S.A. Institución de Banca Múltiple, acting solely as trustee.

-- Class A BRHSCGCB 03U: ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on December 10, 2003, when the Baa1 and Aaa.mx ratings were originally assigned.

-- Class A BRHSCCB 05U: ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on October 27, 2005, when the Baa1 and Aaa.mx ratings were originally assigned.

-- Class A BRHSCCB 06, ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on April 24, 2006, when the Baa1 and Aaa.mx ratings were originally assigned.

-- Class A BRHSCCB 06-2, ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on November 30, 2006, when the Baa1 and Aaa.mx ratings were originally assigned.

-- Class A BRHSCCB 06-3U: ratings downgraded to Baa3 from Baa1 (Global Scale, Local Currency) and to Aa2.mx from Aaa.mx (National Scale); ratings remain on review for possible downgrade. The last rating action occurred on May 6, 2009, when the previous Baa1 and Aaa.mx ratings were placed on review for possible downgrade.

-- Class B BRHSCCB 06-4U: ratings downgraded to B3 from Ba2 (Global Scale, Local Currency) and to B1.mx from A2.mx (National Scale); ratings remain on review for possible downgrade. The last rating action occurred on May 6, 2009, when the previous Ba2 and A2.mx ratings were placed on review for possible downgrade.

-- Class A BRHSCCB 07, ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on February 1, 2007, when the Baa1 and Aaa.mx ratings were originally assigned.

-- Class A BRHCCB 07U: ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on March 12, 2009, when the previous Baa1 and Aaa.mx ratings were upgraded from B3 and B1.mx.

-- Class A-2 BRHCCB 07-2U: ratings downgraded to B3 from Ba3 (Global Scale, Local Currency) and to Ba3.mx from Baa1.mx (National Scale Rating); ratings remain on review for possible downgrade. The last rating action occurred on May 14, 2009, when the previous Ba3 and Baa1.mx ratings were downgraded from Ba1 and A1.mx.

Issuer: HSBC México, S.A. Institución de Banca Múltiple, Grupo Financiero HSBC, División Fiduciaria, acting solely as trustee.

-- Class A-1 BRHCCB 08U: ratings of Baa1 (Global Scale, Local Currency) and Aaa.mx (National Scale) placed on review for possible downgrade. The last rating action occurred on April 21, 2008, when the Baa1 and Aaa.mx ratings were originally assigned.

New York
Maria Muller
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Karen Ramallo
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's takes rating actions on Su Casita Mexican mortgage-backed securitizations
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com