NEW YORK CITY-The ratings of various classes of Bombardier Capital Mortgage Securitization Corp.’s senior/subordinated pass-through certificates series 1998-C and 1999-A have been affirmed by Standard & Poor’s, which has removed them from CreditWatch with negative implications. They were placed on CreditWatch on Oct. 24 due to the performance of the underlying pools and high projected cumulative net losses for both manufactured housing transactions.

Series 1998-C had displayed a cumulative net loss rate of 2.15% of the original pool balance after 22 months, and series 1999-A turned in loss of 1.52%. In addition, both suffered from insufficient monthly excess spread, causing over-collateralization to slip further below the target level of 4.75%.

To support the original ratings, at Bombardier’s request, letters of credit have been issued by Societe Generale SA for more than $16.6 million for the 1998-C deal and over $11.3 million for 1999-A. S&P believes this credit enhancement structure will allow the bonds to pay both principal and interest.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.