Fitch Affirms 53 U.S.-Linked RMBS Classes at 'AAAsf'; Rating Outlooks Stable

NEW YORK--()--Fitch Ratings has affirmed at 'AAAsf' 53 rated U.S. RMBS classes with credit ratings linked to the U.S. Sovereign rating. On March 21, 2014, Fitch affirmed the U.S. Sovereign rating at 'AAA' rating with a Stable Outlook.

A spreadsheet listing the classes can be found on Fitch's web site at 'www.fitchratings.com' by performing a title search for 'U.S.-Linked RMBS Classes March 25, 2014'.

KEY RATING DRIVERS

The 'AAAsf' credit rating of the affected RMBS classes relies on guarantees provided by the government-sponsored enterprises, Fannie Mae and Freddie Mac. Additionally, one class is collateralized with U.S. Treasury Notes. Although most classes also generally benefit from additional forms of credit enhancement (such as subordination), the credit enhancement alone would not be sufficient to maintain an 'AAAsf' credit rating on the RMBS classes if the U.S. Sovereign rating was downgraded below 'AAA'.

Fitch did not conduct loan-level loss analysis or cash flow analysis in its rating review for these classes. The ratings are determined by the U.S. Sovereign rating.

RATING SENSITIVITIES

The ratings of these RMBS will be dependent on the U.S. Sovereign rating. The current rating Outlook is Stable. Consequently, Fitch's sensitivity analysis does not currently anticipate developments with a material likelihood, individually or collectively, of leading to a rating downgrade. However, future developments that may, individually or collectively, lead to negative rating action include:

--A significant increase in general government deficits and debt/GDP ratio; for example, if the U.S. authorities do not take measures in the medium term to offset rising expenditure pressures from ageing and higher interest rates later in the decade.

--A material deterioration in the coherence and credibility of economic policymaking or a negative shock that erodes the role of the U.S. dollar as the pre-eminent global reserve currency and reduces financing flexibility and debt tolerance.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Fitch Affirms United States at 'AAA'; Outlook Stable' (March 21, 2014);

--'Global Structured Finance Rating Criteria' (May 24, 2013).

Applicable Criteria and Related Research: U.S.-Linked RMBS Classes March 25, 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=743156

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=825000

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Presenting Analyst:
Ryan O'Loughlin, +1-212-908-0387
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Grant Bailey, +1-212-908-0544
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Presenting Analyst:
Ryan O'Loughlin, +1-212-908-0387
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Grant Bailey, +1-212-908-0544
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com