LONDON, Jan 31 (Reuters) - Credit rating agency Moody’s Investors Service said on Thursday it has revised its assumptions for losses on loans backing 2006 vintage subprime residential mortgage securities to 14 to 18 percent.
The agency did not say what the previous assumption was. No one at the agency could immediately be reached for comment.
“We are updating our views on the possible loan losses on the 2006 subprime vintage in response to current performance that is proving to be much worse than in prior years and is demonstrating a progressive deterioration,” said Moody’s Chief Credit Officer Nicolas Weill. Moody’s said that as a result of its revised estimates it was likely to take more negative ratings actions on 2006 subprime RMBS.
For Moody’s full release, please double click on [ID:nWLB6625]. (Reporting by Richard Barley; Editing by Greg Mahlich)