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U.K. Prime RMBS Index Report Q1 2011?Stable Credit Performance Continues, But Can Borrowers Withstand Heightened Downside Risks In 2011? Jun 11
Standard & Poors, June 2011
Abstract
Overall performance indicators for the U.K. prime residential mortgage-backed securities (RMBS) that Standard & Poor's Ratings Services rates remained mostly unchanged in the first quarter of 2011. For example, delinquencies remained stable, reflecting broadly flat house prices and an only marginally improving unemployment rate. Correspondingly, payment rates have also remained largely unchanged due to subdued mortgage lending activity. However, in our view, substantial downside risks could threaten any potential improvement in collateral performance as persistently high inflation, potential rate rises, and further government fiscal retrenchment may put some borrowers under financial stress. Nevertheless, we do not expect any deterioration in credit fundamentals to put significant pressure on the ratings in U.K. prime RMBS transactions in our index. To the extent...
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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