Volume 2014 - Number 1
January 10, 2014
Moodys Critical of AAA Rating from Other Firms On Commercial MBS Deal as Market Heats Up
A commercial MBS issued in late December that received AAA ratings from Fitch Ratings and Standard & Poors wouldnt have been rated higher than A1 by Moodys Investors Service. Moodys said the $375 million RBS Commercial Funding Inc. 2013-GSP Trust lacked structural support to obtain the highest ratings. The deal was a single-asset transaction without subordinate classes to absorb expenses that the trust cant pass along to the borrower. In cases where a subordinate class is not present to protect highly rated senior investors, some other feature, such as a reserve fund, has been employed to mitigate the risk, according to Daniel Rubock, a senior vice president at Moodys. The GSP Trust lacks any such structural mitigant. Fitch said...
Subscribers to Inside MBS & ABS have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.
Subscriber Log In
If you are a current subscriber or already purchased this article, please login below.
This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.
You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.
Please contact Customer Service if you need assistance: 1-800-570-5744