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ARCHIVE | Criteria | Structured Finance | CMBS: Managing Pool Diversity The Impact on CMBS Credit Support Levels Aug 00
Standard & Poors, Aug 2000
Abstract
An important part of the credit rating process for CMBS transactions involves an analysis of the loan-to-value (LTV) and the debt-service-coverage (DSC) ratios of the pools' collateral. In turn, the magnitude of the uncertainty associated with these risk profile ratios is directly impacted by the potential changes in the values of the real estate properties that provide the underlying collateral for the securitizations. Changes in the values of the properties, for example, affect the LTV ratios of the mortgages that are the direct collateral for the transactions. The larger the volatility of property values, the greater the range of values that the LTV ratios can assume. A decline in the value of a property will increase its LTV ratio, raising...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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