![]() In partial sequential pay structures, such as the one in this transaction, credit enhancement grows as a percentage of the collateral balance as collections pay down senior notes, until certain enhancement levels are reached. #Aqua finance upgradeMoody's could upgrade the notes if, given current expectations of portfolio losses, levels of credit enhancement are consistent with higher ratings. Alternatively, please see the Rating Methodologies page on for a copy of this methodology.įactors that would lead to an upgrade or downgrade of the ratings: The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in July 2020 and available at. The notes may also benefit from excess spread. Hard credit enhancement for the notes consists of a combination of overcollateralization, a non-declining reserve account and subordination. to perform the backup servicing functions and current expectations for the macroeconomic environment during the life of the transaction.Īt closing, the Class A notes, Class B notes and Class C notes are expected to benefit from 30.30%, 23.10%, 12.95% and 4.85% of hard credit enhancement, respectively. Moody's based its cumulative gross and net loss expectations on an analysis of the credit quality of the underlying collateral the historical performance of similar collateral, including securitization performance and managed portfolio performance the ability of Aqua to perform the servicing functions and Vervent, Inc. ![]() Moody's median cumulative gross and net loss expectation for the 2020-A pool are 20.0% and 16.0%, respectively. We regard the COVID-19 outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety. As a result, the degree of uncertainty around our forecasts is unusually high. However, that outcome depends on whether governments can reopen their economies while also safeguarding public health and avoiding a further surge in infections. Furthermore, borrower assistance programs to affected borrowers, such as payment deferrals, may adversely impact scheduled cash flows to bondholders. Specifically, for US personal loan ABS, performance will weaken due to the unprecedented spike in the unemployment rate, which may limit borrowers' income and their ability to service debt. Our analysis has considered the effect on the performance of consumer assets from the collapse in US economic activity in the second quarter and a gradual recovery in the second half of the year. The rapid spread of the COVID-19 outbreak, the government measures put in place to contain it and the deteriorating global economic outlook, have created a severe and extensive credit shock across sectors, regions and markets. (previously known as First Associates and Portfolio Financial Servicing Company), an experienced servicer. ![]() as servicer and the back-up servicing arrangement with Vervent, Inc. The ratings are based on the quality of the underlying collateral and its expected performance, the capital structure, and the experience and expertise of Aqua Finance, Inc. $35,070,000 Class D Asset Backed Notes, Assigned (P)Ba2 (sf) $43,950,000 Class C Asset Backed Notes, Assigned (P)Baa2 (sf) $31,175,000 Class B Asset Backed Notes, Assigned (P)A3 (sf) $303,975,000 Class A Asset Backed Notes, Assigned (P)A2 (sf) The complete rating actions are as follows: ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |