Moody’s Investors Service downgraded some Irish residential mortgage-backed securities issue by Ulster Bank’s Celtic RMBS program, amid rising arrears.
“As of January 2012, loans 90-plus days in arrears have increased to 15.0 percent of the current balance in Celtic 9, 15.2 percent in Celtic 10 and 7.6 percent in Celtic 11, which constitutes an approximate 20-40 percent increase compared with June 2011 levels,” Moody’s said in statement today.
Moody’s said that “loss realization is slow for Irish RMBS given the lengthy enforcement procedures in Ireland” as well as a moratorium imposed on Irish lenders, it said. “Moody’s expects that rising unemployment and falling incomes, which stem from the austerity measures in Ireland, will continue to hurt borrowers’ ability to fulfil their financial obligations,” it said.
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