sFitch Ratings has downgraded 11 classes of real estate ABS serviced, partially or entirely, by Fairbanks while affirming 381 classes at the current ratings and leaving another 11 on Rating Watch Negative. While the downgraded tranches had been "experiencing significant credit problems and experienced prior negative rating actions," the declining Libor rates bolstered excess spread sufficiently to maintain the current ratings. "If Fitch's opinion were solely based upon the Fairbanks rating actions, many classes would have been downgraded. However, in the recent environment the consideration of seasoning, performance and most notably LIBOR movements were significant mitigants," Fitch said in a release.
For the full release and list of downgraded classes, click: