Bangkok--14 Jan--Standard & Poor's
Standard & Poor's Ratings Services lowered its rating on Denver City and County, Colo.'s single-family home mortgage revenue bonds series 2002A and 2002B to 'AA' from 'AAA'. The bonds are secured by Ginnie Mae mortgage-backed securities (MBS).
The rating continues to reflect the sufficiency of revenues from mortgage debt service payments and investment earnings to pay full and timely debt service on the bonds until maturity, extremely strong investment quality, and an asset-to-liability ratio of 109.747% as of Dec. 04, 2008.
The rating reflects the strong credit quality of the assets and credit support underlying the issue. The assets consist of Ginnie Mae guaranteed MBS, which are 'AAA' eligible under Standard & Poor's rating criteria.
However, the rating was lowered to 'AA' from 'AAA' to reflect the current rating of Transamerica Occidental Life Insurance Co., which provides credit support in the form of guaranteed investment contract covering the revenue fund and redemption fund.
If the security prepays, there are sufficient assets to cover the reinvestment risk based on the 15-day minimum notice period required for special redemptions.
Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
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Karen Fitzgerald, San Francisco (1) 415-371-5023
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