Month: August 2010

Rating Agency Developments

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On August 6, S&P revised its methodology and assumptions for leveraged super senior CDOs. S&P Release.

On August 4, S&P updated its criteria related to cash flow assumptions for tobacco settlement-backed securitizations to provide additional transparency for its assumptions. S&P Release.

On July 30, Moody’s updated its methodology that details how it rates REITs and other commercial real estate firms.  Moody’s does not anticipate changes to public ratings as a result of these updates. Moody’s Release.

On August 5, DBRS released criteria on guarantees and other forms of explicit support. DBRS Release.

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Foreclosure Prevention Assistance

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On August 4, the Obama Administration approved plans submitted by state housing finance agencies in North Carolina, Ohio, Oregon, Rhode Island, and South Carolina to access $600 million in foreclosure prevention assistance from the “Hardest Hit Fund“, which was established in February to provide aid in states most affected by the downturn of the housing market. Treasury Release.

FDIC Pilot RMBS Transaction

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On July 30, the FDIC closed a sale of RMBS backed by approximately $471.3 million of performing single-family mortgages from 16 failed banks.  The approximately $400 million senior certificates, representing 85% of the capital structure, are guaranteed by the FDIC.  The subordinated certificates, comprised of a mezzanine class and an over-collateralization class, represent 15% of the capital structure and will initially be retained by the failed bank receiverships. FDIC Release.