Moody’s Chops Su Casita ABS

Moody’s has downgraded a Hipotecaria Su Casita construction loan securitization to B3/Ba3.mx from B1/Baa1.mx, and withdrawn the B1 underlying rating. The move comes after the Ambac financial guarantee on the senior certificates was canceled. The downgrade reflects the credit deterioration of the portfolio, says Moody’s. The ratings action also reflects concerns about the mortgage provider’s stability as a servicer of debt, as a result of the recent downgrade of the company’s issuer rating.