Investors in the securitizations from National Century Financial Enterprises (NCFE) are awaiting the results of an investigation performed by accounting firms Houlihan Lockey and M.R. Weiser into the state and validity of NCFE's healthcare receivables. Preliminary information could be reported back to investors sometime this week, sources said.
Both outstanding NPF trusts were further downgraded last week by Moody's Investors Service, as the rating agency remained concerned over the discrepancies between actual trust cashflow and the receivables as represented in the servicing reports. Since Oct. 25, Moody's has lowered the once Aaa' rated classes of NPF XII twelve notches to Ba3,' an almost unprecedented ratings event for securitization. The A class notes from NPF VI trust have been taken down to Ba2.'