News
Fitch Affirms 4 & Downgrades 2 ABS Classes from 3 BLX Deals
CHICAGO-(Business Wire)-July 3, 2008 - Fitch Ratings has taken the following rating actions on the Business Loan Express (BLX) transactions listed below:
BLX SBA Loan-Backed Adjustable-Rate Notes, series 2001-2
—Class A downgraded to 'AA' from 'AAA';
—Class M downgraded to 'BBB' from 'A+' and removed from Rating Watch Negative.
BLX SBA Loan-Backed Adjustable-Rate Notes, series 2002-1
—Class A affirmed at 'AAA';
—Class M affirmed at 'A'.
BLX Business Loan-Backed Adjustable-Rate Notes, series 2002-A
—Class A affirmed at 'AAA';
—Class B affirmed at 'A'.
The downgrades reflect continued deterioration within the collateral pool for the 2001-2 series. Since Fitch's last review in December 2007, the transaction has continued to experience a higher loss pace and increasing delinquencies, currently representing approximately 30% of the pool. Fitch has continued to see consistent delinquency bucket roll forward rates and expects this trend to continue, which ultimately may lead to further portfolio loan loss deterioration. Fitch's analysis, detailed below, anticipates further declining credit support available to the outstanding classes.
The affirmations reflect performance within Fitch's expectations for the 2002-1 and 2002-A series. Recently, the transactions have seen a slight increase in losses and delinquencies. However, based on Fitch's analysis, the slight uptick in performance has not materially impacted the credit support available to the outstanding notes, hence the rating affirmations.
In its analysis, Fitch reviewed the transactions on an individual loan basis. All loans over 60 days delinquent were deemed defaulted loans. Loss and recovery expectations were applied on the loans based on collateral characteristics (i.e. real estate, machinery and equipment, and accounts receivables) and historical recovery performance. All loans over 180 days received a further stress by discounting the remaining loan balance. After determining expected losses on each loan, these expectations were applied to outstanding balances. Fitch was then able to assess the impact on enhancement levels.
Fitch will continue to closely monitor these transactions and may take additional rating action in the event of changes in performance and credit enhancement measures.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.
 |
 |
 |
|
||
 |
|
 |
|
||
Search Our News Using Google Search
Can't find what you want? Try using Google:
