Key developments in global structured finance being actively monitored - Fitch |
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Tue, 23 Oct 2007 10:44
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MUMBAI (Thomson Financial) - Fitch Ratings said its analysts are actively monitoring the key issues and developments of global structured finance, and continue to take appropriate actions to address them.Group managing director and head of Fitch's US structured finance team John Bonfiglio said the credit problems that began with US subprime mortgage bonds have spread across the globe.'Many investors in this RMBS (residential mortgage backed securities) product are facing their own liquidity and credit challenges and Fitch is working hard to address both the residential and all the related issues it sees, and re-rate securities, as quickly as possible,' Bonfiglio said at the agency's Global Structured Finance conference in Tokyo.Fitch expects the overwhelming majority of 'AAA' rated RMBS to be able to survive the stresses of the current market.Glenn Costello, managing director and RMBS co-head, said Fitch has reviewed all subprime RMBS from 2006 and adjusted ratings as necessary. It has also made changes to the analyses of new RMBS for both prime and subprime mortgages.The outlook for the UK non-conforming (subprime) mortgage sector has become more negative following the liquidity crisis, which has resulted in a 'shrinking subprime sector and presents similar reset risks to the 2006 vintage that have already afflicted the same US vintage', said Stuart Jennings, managing director and head of Fitch's European RMBS team.'Fitch is revising outlooks for deals where appropriate, which is an early indicator of potential rating action to follow,' he said.TFN.newsdesk@thomson.comapm/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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RPT HSBC outlook cut to stable from positive, long-term IDR affirmed - Fitch 