News Column

Fitch Maintains Rating Watch Negative on 55 U.S.-Linked RMBS

February 7, 2014



NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has maintained Rating Watch Negative on 55 'AAAsf' rated U.S. RMBS classes with credit ratings linked to the U.S. Sovereign rating. On Oct. 15, 2013, Fitch placed the U.S. Sovereign 'AAA' rating on Rating Watch Negative.

A spreadsheet listing the classes can be found on Fitch's web site at www.fitchratings.com by performing a title search for 'US-Linked RMBS Classes Feb. 7, 2014'.

KEY RATING DRIVERS

The 'AAAsf' credit rating of the affected RMBS classes relies on guarantees provided by the government-sponsored enterprises, Fannie Mae and Freddie Mac. Additionally, one class is collateralized with U.S. Treasury Notes. Although most classes also generally benefit from additional forms of credit enhancement (such as subordination), the credit enhancement alone would not be sufficient to maintain an 'AAAsf' credit rating on the RMBS classes if the U.S. Sovereign rating was downgraded below 'AAA'.

RATING SENSITIVITIES

The 55 affected classes will be reviewed on a three month schedule until the U.S. Sovereign's Rating Watch Negative is resolved. Additionally, the possibility exists for the Rating Watch on these classes to be resolved sooner if there is an unexpected positive change in the underlying credit.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'Fitch Places United States' 'AAA' on Rating Watch Negative' (Oct. 15, 2013).

Applicable Criteria and Related Research: US-Linked RMBS Classes Feb. 7, 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735737

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=820053

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Presenting Analyst:

Ryan O'Loughlin, +1-212-908-0387

Fitch Ratings, Inc.

One State Street Plaza

New York, NY 10004

or

Committee Chairperson:

Grant Bailey, +1-212-908-0544

Managing Director

or

Media Relations:

Sandro Scenga, +1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Business Wire


Story Tools