Standard & Poors announced that it will no longer be rating U.S. closed-end second-lien mortgage loans as well as related RMBS. Since the S&P projects an unprecedented level of loan performance deterioration, it explained that the market segment does not allow for meaningful analysis of new issuance and securitization.
However, the rating agency will continue to apply its current performance-based surveillance methodology to outstanding U.S. RMBS CES. S&P will also evaluate any proposed re-REMIC transactions that may consist partly of CES on a case-by-case basis.
