Archives: Effects of Rating Downgrades

Subscribe to Effects of Rating Downgrades RSS Feed

Just when you thought Deco-ast was clear for special servicer replacements

If you thought the wrangling over special servicer replacements was over following Richard Snowden QC’s judgment in US Bank v Titan Europe 2007-1 (NHP) plc in April last year, think again. Ever since Fitch issued their press release confirming that as a matter of policy it would not provide rating agency confirmations (RACs) in relation to the … Continue Reading

The Liquidity Eclipse

As was common at the time of the inception of the transaction, Danske Bank A/S (Danske) had provided a liquidity facility (LF) on a commercial mortgage-backed securitisation issued by the issuer, Gemini (Eclipse 2006-3) plc (Gemini).  Due to the subsequent plethora of downgrades that have followed the financial crisis (from which the liquidity facility provider … Continue Reading

Practical implications of insolvent originators

Just a few blissful years ago, one would never think of originators getting wound up or sellers being liquidated. In the world of structured finance, the possibilities of that doomsday scenario were remote, unthinkable and above all, no one wanted to discuss its potential occurrence. That changed with the Lehman collapse and with that, a … Continue Reading

Thrown in at the Deep End

The moment when the news blast comes in. You glance at the title. “New rating downgrades”. Dismay. No other way to describe it. It’s not shock really: You’ve been expecting this to happen, sooner or later. Instantly, several switches are starting to go down in your mind. You start counting: One, two, three … forty. … Continue Reading