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| Residential Capital LLC’s servicer ratings were downgraded again.Fitch Ratings downgraded ResCap’s primary servicer rating for prime mortgages and Alt-A loans to RPS4 from RPS3, an announcement Friday said. The primary servicer ratings for subprime loans, home-equity lines-of-credit and high loan-to-value mortgages were downgraded to RPS4 from RPS3.
In addition, ResCap’s primary specialty-subservicer rating was downgraded to RPS4 from RPS3, while its special servicer and master servicer ratings were downgraded to RMS4 from RMS3-. Fitch rates servicers on a scale of one-to-five, with one being the strongest. Plus and minus signs further differentiate ratings. The ratings agency attributed the negative action to ResCap’s deteriorating financial position and noted that the company continues to struggle with liquidity and financial flexibility. A number of ResCap affiliates saw their servicer ratings downgraded earlier this month by Moody’s Investors Service. Related: |
