Last week, Fitch Ratings announced that it had upgraded two home equity net interest margin securitizations, something that, prior to 2002, had never visibly happened. The agency confirmed it has raised its ratings on one other NIM deal earlier this year, though the action was not publicly announced.

Interestingly, NIMs generally aren't around long enough to be upgraded, as the structures have average lives of less than one year and payout inside of 24 months. According to Fitch, the two deals it just reviewed - both brought to market through Morgan Stanley issuance vehicles - were set to pay out eight months ahead of schedule. Fitch has not ruled out more upgrades down the line.

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