Fitch Ratings has revised its loss expectations and taken various rating actions on 143 U.S. manufactured housing (MH) residential mortgage-backed securities (RMBS) transactions. Fitch affirmed 369 classes, upgraded 58 classes and downgraded 10 classes.
Collateral performance for the sector has generally remained stable over the last year, Fitch says, attributing the performance stability to consistent servicing practices nand the significant seasoning of the assets. More than 95% of the transactions reviewed were issued over 10 years ago.
The upgrades reflect an improvement in the relationship of bond credit enhancement to expected collateral loss. The majority of upgrades consisted of one full rating category movement. The limited downgrades were generally the result of decreased credit enhancement relative to expected collateral loss. One class was downgraded due to projected interest shortfalls. No classes were downgraded more than one full rating category.