DBRS Downgrades 241 Classes from 95 RMBS Transactions

DBRS has today downgraded 241 classes from 95 Residential Mortgage-Backed Securities (RMBS) transactions.

The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate Subprime and Alt-A mortgages.

The classes have been downgraded as a result of the significant increase in serious delinquencies and losses relative to the available credit enhancement.

Additionally, the continued negative trend in the housing market and unemployment rates have contributed significantly to the increased default expectations as well as to the considerably lower prepayment expectations.

Given the combination of current delinquencies and corresponding potential significant losses, along with expectations for future delinquencies and defaults, current credit support is not expected to sufficiently cover the anticipated losses. In many cases, subordinate classes have already been impaired, further weakening the available credit support for the remaining senior and mezzanine classes.

Notes:
All figures are in U.S. dollars unless otherwise noted.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

Related Research
U.S. RMBS Surveillance Methodology