Fitch Ratings has revised the ratings on classes 9A2, 10A4, 11A1, and 12A4 of Lehman Mortgage Trust 2007-5.
These bonds were downgraded to 'D' on Oct. 6, 2009 following a reported principal write-down as of the September 2009 distribution date. Fitch periodically downgrades RMBS bonds that incur write-downs to 'D' as part of its ongoing surveillance process. However, the allocation of losses to these bonds was recently deemed incorrect and the distributions have since been adjusted. Since these bonds have not incurred principal write-downs as originally reported, Fitch is revising the bonds' ratings back to the ratings that were in place prior to the Oct. 6 downgrades.
--Class 9A2 revised to 'C/RR3' from 'D/RR3';
--Class 10A4 revised to 'C/RR3' from 'D/RR3';
--Class 11A1 revised to 'C/RR2' from 'D/RR2';
--Class 12A4 revised to 'C/RR3' from 'D/RR3'.
The Recovery Rating (RR) scale is based upon the expected relative recovery characteristics of an obligation. For structured finance, Recovery Ratings are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. The methodology used to assign Recovery Ratings is described in Fitch's Aug. 17, 2009 report, 'Criteria for Structured Finance Recovery Ratings'.
Additional details are available in the following research, also available at 'www.fitchratings.com':
--'Global Structured Finance Rating Criteria' (Sept. 30, 2009).
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings, New York
Tara Sweeney, 212-908-0347
Michele
Patterson, 212-908-0779
or
Media Relations:
Sandro
Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com
