(The following statement was released by the rating agency)
Oct 03 - OVERVIEW
-- We have lowered our ratings on the class A1, A2, and A3 notes in Fastnet Securities 6, based on the application of 2012 counterparty criteria and our general criteria for ratings.
-- Based on the high level of 90+ days delinquencies, combined with a lack of repossessions and realized losses, we have assumed that the transaction is undercollateralized.
-- Fastnet Securities 6 is an Irish RMBS transaction with loans originated by Permanent TSB .
Standard & Poor's Ratings Services today lowered its credit ratings on Fastnet Securities 6 Ltd.'s class A1, A2, and A3 notes (see list below).
Today's rating actions reflect continued increases in 90+ days arrears, and declines in Irish house prices since our previous full review of this transaction in February 2011.
Lender forbearance measures and existing legal and regulatory frameworks in Ireland have kept repossessions low, with little realized losses to date. We have addressed these risks through assuming that all loans with arrears greater than nine monthly payments are in default and will result in losses. This has led us to conclude that the transaction is effectively undercollateralized.