© 2024 Arizent. All rights reserved.

Fitch Downgrades 439 RMBS

Fitch Ratings has downgraded 439 bonds in 244 RMBS transactions to "Dsf." The rating agency explained that the downgraded bonds have all incurred a principal write-down.

Over 99% of those bonds downgraded had previously been rated "Csf," which means they were expected by Fitch to have a default. The remaining bonds were rated "CCsf."

Of the 144 transactions, 116 consist of prime mortgages, 77 are Alt-A and 40 are considered subprime, with the remainder from "other sectors," Fitch said.

Minimal recovery for investors is expected on 58% of these bonds, while another 37% of the bonds could see a 50% to 90% recovery of the outstanding balance.

The downgrades only involve those bonds with write-downs and the remaining bonds in the affiliated transactions were not analyzed, Fitch said.

For reprint and licensing requests for this article, click here.
RMBS
MORE FROM ASSET SECURITIZATION REPORT