TEXT-S&P puts 2 BLC Capital Corp. 2002-A ratings on watch negative

Mon Nov 12, 2012 9:12am EST

Nov 12 -

OVERVIEW

-- BLC Capital Corp. 2002-A is an asset-backed securities transaction collateralized primarily by a pool of small business development loans.

-- We placed our ratings on classes A and B from BLC Capital Corp.'s 2002-A on CreditWatch with negative implications.

-- The CreditWatch placements reflect increased net losses within the transaction portfolio.

Standard & Poor's Ratings Services today placed its ratings on the class A and B notes from BLC Capital Corp.'s 2002-A on CreditWatch with negative implications (see list).

BLC Capital Corp. 2002-A is an asset-backed securities transaction collateralized primarily by a pool of small business development loans.

The credit performance of the transaction has deteriorated since our last rating actions in June 2011, as evidenced by an increase in the cumulative net losses the portfolio has realized.

According to the Sept. 30, 2012, servicer report, the portfolio only has eight loans remaining. We note that about 5.6% of the pool consists of loans to small business in areas affected by Hurricane Sandy.

We expect to resolve the CreditWatch placements within 90 days after we complete a comprehensive analysis and committee review.

RELATED CRITERIA AND RESEARCH

-- ANPCC: Methodologies And Assumptions For Rating U.S. Small Business Loan Securitizations, June 2, 2010

-- Standard & Poor's Introduces U.S. Small-Business Portfolio Model, Nov. 6, 2007

-- Two Rating Approaches Converge To Create Small-Balance Commercial Real Estate Loan Securitization Criteria, Oct. 25, 2006

-- Criteria for Securitization of U.S. Small and Middle-Market Enterprise Loans, Jan. 30, 2004

RATINGS PLACED ON CREDITWATCH NEGATIVE

BLC Capital Corp.

2002-A

Rating

Class To From

A BB+ (sf)/Watch Neg BB+ (sf)

B B+ (sf)/Watch Neg B+ (sf)

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