MONTERREY, Mexico--(BUSINESS WIRE)--Fitch Ratings has placed the following Metrofinanciera, S.A.P.I. de C.V., SOFOM, E.N.R. (Metrofinanciera) residential mortgage back securities (RMBS) on Rating Watch Negative:
MTROCB 07U
--UDI indexed notes due 2033 'B+sf' and 'BBB(mex)'; Rating Watch Negative.
MTROCB 08U
--UDI indexed notes due 2033 'B+sf' and 'BBB(mex)'; Rating Watch Negative.
KEY RATING DRIVERS
Today's rating actions reflects Metrofinanciera's current impossibility to transfer March-collections from its banking accounts to the trust accounts in order to cover next monthly coupon payment, exposing MTROCB 07U and MTROCB 08U notes to liquidity risk. Metrofinanciera is the primary servicer on these transactions, and its collection accounts are temporarily frozen following a lawsuit filed by an unsecured investor. According to account balances received from the respective trustees, net current cash and cash equivalents positions in the trusts (in the form of liquidity reserves or available cash) are somewhat limited to fully pay interests on the following coupon payment dates.
RATING SENSITIVITIES
Reviewed ratings could be downgraded by one or more rating categories if expected March-collections are not fully transferred to the trusts' accounts or if alternative payments arrangements are not achieved in order to timely recover recurrent cashflows to the trusts. A downgrade could also take place if despite paying next coupon, Metrofinanciera's banking accounts continue to be frozen in the coming months, its servicing abilities rapidly deteriorate, asset quality metrics of rated RMBS worsen and net cash positions remain intermittent for the foreseeable future.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Rating Criteria for RMBS in Latin America' (Feb. 15, 2013);
--'RMBS Latin America Criteria Addendum - Mexico' (Aug. 2, 2012).
Applicable Criteria and Related Research
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Rating Criteria for RMBS in Latin America
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701131
RMBS Latin America Criteria Addendum - Mexico (Mortgage Loss and Cash Flow Assumptions)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=683811
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