Imperial Paper

Last week\'s residential mortgage ratings actions
By SAM GARCIA
1/15/2002

Standard and Poor's (S&P) assigned a rating of 'A' to Radian Group Inc.'s $200 million, 20-year senior convertible debentures. At the same time, other ratings on Radian and its ratings on Radian's operating subsidiaries were affirmed and the outlook is stable. On a consolidated basis, Radian's operating results have been very strong. S&P sees some cyclical deterioration in the terms of trade encountered by the mortgage insurance industry. Because mortgage insurance is the largest component of Radian's business, it is possible that the coverage on Radian's debt could decline, but S&P does not expect the decline, if it occurs, to be to levels inconsistent with the rating.

S&P raised and affirmed classes of Imperial Savings Association's mortgage-backed certificates series 1987-FB1, series 1988-3, series 1987-4 and series 1987-FB2. The raised ratings reflect the growth in the current and projected credit support percentages sufficient to support the new ratings, and all ratings reflect the level of subordination. The pool has an original geographic concentration in California.

Classes of various mortgage pass-through certificate series issued by Chase Mortgage Finance Trust were affirmed by S&P, reflecting actual and projected credit support percentages that adequately support the assigned ratings, relatively low total delinquency percentages, and relatively low cumulative realized losses.

S&P also raised and affirmed classes of Chase Mortgage Finance Corp.'s mortgage pass-through certificates series 1995-A. The actions reflect the level of subordination and delinquency.

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