Only three months after Mexican GSE Fovissste issued its first cross-border RMBS, the lender's deals are facing ratings trouble.
Moody’s de Mexico said it was reviewing “reporting inconsistencies” in the originator’s RMBS, for which Fovissste also acts as servicer. As a result, the agency has put these deals on review for downgrade. The program’s ratings now stand at ‘Aaa.mx(sf)’ on the national scale and ‘Baa1(sf)’ on the global, local currency scale.
In a release, Moody’s did not mince words.
"These issues have raised concerns about the quality, consistency, and clarity of the information in the securitizations' collections reports," said Karen Ramallo, a Moody's assistant vicepresident. "Further, given that the collections reports do not necessarily reflect what Fovissste states it is actually doing, assessing the combined impact of the reporting issues presents some difficulties."
Master servicer ACFIN may have to answer some questions as well: the agency said that among the problems was that ACFIN did not always publish a collections report for the month immediately after the pool cut-off date. At any rate, Fovissste’s deposits to trust accounts were not in line with ACFIN’s deposit instructions, another practice that might indicate deeper problems.