Moody's Investors Service has upgraded the ratings of 38 tranches from 15 deals issued by various issuers, backed by Subprime mortgage loans.
Complete rating actions are as follows:
Issuer: C-BASS Mortgage Loan Asset-Backed Certificates, Series 2005-CB2
Cl. M-2, Upgraded to B1 (sf); previously on Jun 25, 2015 Upgraded to B2 (sf)
Cl. M-3, Upgraded to B3 (sf); previously on Jun 25, 2015 Upgraded to Caa2 (sf)
Issuer: C-BASS Mortgage Loan Asset-Backed Certificates, Series 2005-CB6
Cl. A-3, Upgraded to A3 (sf); previously on Jun 25, 2015 Upgraded to Baa3 (sf)
Cl. A-4, Upgraded to A2 (sf); previously on Jun 25, 2015 Upgraded to Baa2 (sf)
Cl. M-1, Upgraded to B2 (sf); previously on Jun 25, 2015 Upgraded to B3 (sf)
Issuer: C-BASS Mortgage Loan Asset-Backed Certificates, Series 2005-CB8
Cl. AF-2, Upgraded to Ba3 (sf); previously on Aug 14, 2012 Downgraded to B3 (sf)
Cl. AF-3, Upgraded to B2 (sf); previously on Jun 25, 2015 Upgraded to Caa2 (sf)
Cl. AF-4, Upgraded to B2 (sf); previously on Jun 25, 2015 Upgraded to Caa2 (sf)
Cl. AF-5, Upgraded to B1 (sf); previously on Jun 25, 2015 Upgraded to Caa1 (sf)
Issuer: C-BASS Mortgage Loan Asset-Backed Certificates, Series 2006-CB6
Cl. A-I, Upgraded to Baa3 (sf); previously on Jun 25, 2015 Upgraded to B1 (sf)
Cl. A-II-3, Upgraded to B2 (sf); previously on Jun 25, 2015 Upgraded to Caa1 (sf)
Cl. A-II-4, Upgraded to B3 (sf); previously on Jun 25, 2015 Upgraded to Caa2 (sf)
Issuer: Centex Home Equity Loan Trust 2005-C
Cl. M-2, Upgraded to Ba1 (sf); previously on Jun 30, 2015 Upgraded to Ba2 (sf)
Cl. M-3, Upgraded to Ba2 (sf); previously on Jun 30, 2015 Upgraded to Caa1 (sf)
Cl. M-4, Upgraded to B3 (sf); previously on Jun 30, 2015 Upgraded to Caa3 (sf)
Cl. M-5, Upgraded to Caa2 (sf); previously on May 5, 2010 Downgraded to C (sf)
Issuer: Centex Home Equity Loan Trust 2006-A
Cl. AV-3, Upgraded to A1 (sf); previously on Jun 30, 2015 Upgraded to A3 (sf)
Cl. AV-4, Upgraded to A2 (sf); previously on Jun 30, 2015 Upgraded to Baa2 (sf)
Cl. M-1, Upgraded to Ba3 (sf); previously on Jun 30, 2015 Upgraded to B2 (sf)
Cl. M-2, Upgraded to Caa1 (sf); previously on Jun 30, 2015 Upgraded to Ca (sf)
Issuer: New Century Home Equity Loan Trust, Series 2005-D
Cl. A-1, Upgraded to Baa1 (sf); previously on Jun 30, 2015 Upgraded to Ba1 (sf)
Cl. A-2c, Upgraded to A1 (sf); previously on Jun 30, 2015 Upgraded to Baa1 (sf)
Cl. A-2d, Upgraded to Baa1 (sf); previously on Jun 30, 2015 Upgraded to Ba1 (sf)
Cl. M-1, Upgraded to B2 (sf); previously on Jun 30, 2015 Upgraded to B3 (sf)
Issuer: Newcastle Mortgage Securities Trust 2006-1
Cl. A-4, Upgraded to A1 (sf); previously on Jun 22, 2015 Upgraded to Baa2 (sf)
Cl. M-1, Upgraded to Ba3 (sf); previously on Jun 22, 2015 Upgraded to B2 (sf)
Cl. M-2, Upgraded to B3 (sf); previously on Jun 22, 2015 Upgraded to Caa3 (sf)
Issuer: Park Place Securities, Inc., Asset-Backed Pass-Through Certificates, Series 2005-WCW2
Cl. M-3, Upgraded to Caa3 (sf); previously on Sep 10, 2014 Upgraded to Ca (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2005-3
Cl. AV-1A, Upgraded to A1 (sf); previously on Jun 25, 2015 Upgraded to Baa1 (sf)
Cl. AV-1B, Upgraded to Baa3 (sf); previously on Jun 25, 2015 Upgraded to Ba1 (sf)
Cl. AV-2, Upgraded to A1 (sf); previously on Jun 25, 2015 Upgraded to Baa1 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2005-5
Cl. AF-6, Upgraded to Baa1 (sf); previously on Jun 25, 2015 Upgraded to Ba2 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2005-B
Cl. M-5, Upgraded to B3 (sf); previously on Jun 25, 2015 Upgraded to Caa2 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2006-A
Cl. A-4, Upgraded to Aa2 (sf); previously on Jun 25, 2015 Upgraded to A1 (sf)
Issuer: Popular ABS Mortgage Pass-Through Trust 2006-D
Cl. A-2, Upgraded to Aa3 (sf); previously on Jun 25, 2015 Upgraded to A3 (sf)
Cl. A-3, Upgraded to Baa1 (sf); previously on Jun 25, 2015 Upgraded to Ba1 (sf)
Issuer: Centex Home Equity Loan Trust 2005-D
Cl. M-4, Upgraded to B1 (sf); previously on Jun 30, 2015 Upgraded to B2 (sf)
Cl. M-5, Upgraded to Caa1 (sf); previously on Jun 30, 2015 Upgraded to Caa3 (sf)
RATINGS RATIONALE
The upgrades are a result of improving performance of the related pools and/or build-up in credit enhancement of the tranches. The actions reflect the recent performance of the underlying pools and Moody's updated loss expectations on the pools.
The principal methodology used in these ratings was “US RMBS Surveillance Methodology” published in November 2013. Please see the Ratings Methodologies 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 5.0% in March 2016 from 5.5% in March 2015. Moody's forecasts an unemployment central range of 4.5% to 5.5% for the 2016 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 2016. 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_SF430224
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
The material has been provided by InstaForex Company – www.instaforex.com