NEW YORK--()--Fitch Ratings has upgraded two senior classes in two subprime RMBS transactions. Both classes are first priority in sequential-pay cashflow structures and both are expected to pay off in full within the next 12 months based on recent mortgage pool trends.
Fitch's rating actions are as follows:
Stanwich Asset Acceptance Company, L.L.C. 2007-FRE1
--A-1 (144527AA6) upgraded to 'Bsf' from 'CCsf'; assigned Stable Outlook.
Securitized Asset Backed Receivables 2006-WM1:
--A-1A (81375WKL9) upgraded to 'Bsf' from 'CCCsf'; assigned Stable Outlook.
Despite the relatively short remaining lives under base-case assumptions, the bonds were not upgraded beyond 'Bsf' due to credit sensitivities under stressed changes to interest rates, prepayment rates and loss-timing assumptions.
These actions were reviewed by a committee of Fitch analysts.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria & Related Research:
--'Fitch Resolves Watch Status on Various RMBS' (Dec. 5, 2012);
--'U.S. Prime Pre-2005 RMBS: Not What It Used to Be' (Sep. 6, 2012);
--'U.S. RMBS Loan Loss Model Criteria' (Aug. 10, 2012);
--'U.S. RMBS Surveillance Criteria' (Aug. 10, 2012);
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Structured Finance Recovery Estimates for Distressed Securities' (Nov. 18, 2011);
--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012);
--'Criteria for Interest Rate Stresses in Structured Finance Transactions' (March 20, 2012);
--'Criteria for Rating Caps in Global Structured Finance Transactions' (Aug. 2, 2012).
Applicable Criteria and Related Research:
Criteria for Rating Caps in Global Structured Finance Transactions
Criteria for Interest Rate Stresses in Structured Finance Transactions
Counterparty Criteria for Structured Finance Transactions
Structured Finance Recovery Estimates for Distressed Securities
Global Structured Finance Rating Criteria
U.S. Prime Pre-2005 RMBS: Not What It Used to Be (Adverse Selection Increasing Negative Rating Pressure)