The ratings reflect the strength of the cross-collateralized and mostly well-located portfolio of 13 properties in the asset pool; the conservative loan-to-value ratio and strong debt service coverage ratio; sound collateral package and legal structure; an interest rate hedge agreement that protects the borrower's payments under the underlying
senior mortgage bond from interest rate fluctuations; and certain additional structural protections.
The preliminary ratings reflect the strength of the cross-collateralized and the mostly well-located portfolio of 13 properties in the asset pool; the conservative loan-to-value ratio and strong debt service coverage ratio; sound collateral package and legal structure; an interest rate hedge agreement that protects the borrower's payments under the underlying
senior mortgage bond from interest rate fluctuations; and certain additional structural protections.
The policy was issued in support of a $95 million securitization of
Senior Mortgage Bonds on behalf of BACS I Mortgage Trust.
Senior Mortgage Bonds of $156 million were placed by Bear Stearns with U.
The structure of the transaction and the investment grade ratings assigned permitted the Senior Mortgage Bonds, at their original launch, to price significantly through the argentine sovereign curve.
