S&P: Ratings Affirmed On AFG 2010-1 Trust - Warehouse Series No. 2 RMBS After Margin Increase
The rating affirmations follow the increase on the rated notes' margins. Despite the increase, we consider the transaction has sufficient cash flow for timely payment of interest and ultimate repayment of principal on the notes by the legal final maturity date, under our cash flow analysis and key stress assumptions. We view that the liquidity facility, which is equal to 1.7% of the rated notes outstanding within the transaction, is adequate under our stress assumptions to cover timely payment of interest.
The affirmations also reflect our view that the amount of credit support provided for each class of notes is at, or in excess of, the minimum amount that we assess to be commensurate with the respective rating levels. The credit support available is therefore sufficient to withstand the stresses commensurate with the ratings.