Monday, January 22, 2007

Another Downgrade

NEW YORK (Standard & Poor's)
Jan. 22, 2007--Standard & Poor's Ratings Services today lowered its rating on class B-2 from ACE Securities Corp. Home Equity Loan Trust Series 2005-SL1 to 'B' from 'BB+' and placed it on CreditWatch with negative implications (see list). The lowered rating and CreditWatch placement reflect the deteriorating performance of the collateral in the pool. Credit support for this transaction is derived from a combination of subordination, excess interest, and overcollateralization. Credit enhancement is currently projected to fall significantly below the original credit support amount of 13.15%. While actual credit enhancement is 9.74% of the current pool balance, additional losses resulting from foreclosures (approximately $2,682,000) and REOs (approximately $210,000) will likely erode much of the $5,251,200 of overcollateralization. Cumulative losses are $9,075,249 for this transaction, or 3.51% of the original pool balance. As of the December 2006 distribution date, total delinquencies, as a percentage of the current pool principal balance, were 12.65%, and 6.49% were categorized as seriously delinquent (90-plus days, foreclosure, and REO).


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