Syncora Holdings Ltd. (fka SYCRF)

[DennyCrane550]

Yet Another Upgrade -

Harborview Mortgage Loan Trust 2006-BU1

background ha (not a beyonce fan but hey UPGRADE ) -

Beyoncé - Upgrade U ft. Jay-Z

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Tho unclear if Syncora still has exposure or not - was tendered in 2009 - perhaps remainder - not sure how much has paid down

regardless - minor positive news - on the margin - directional vector for adjacent RMBS, etc



https://www.google.com/search?q=HarborView+Mortgage+Loan+Trust+2006-BU1+syncora&rlz=1C1CHKZ_enUS433US433&oq=Harborview+Mortgage+Loan+Trust+2006-BU1&aqs=chrome.1.69i57j69i59j0j69i60l2.1659j0j7&sourceid=chrome&ie=UTF-8



https://www.moodys.com/credit-ratings/HarborView-Mortgage-Loan-Trust-2006-BU1-credit-rating-400041318

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Rating Action: Moody's upgrades Class 2A-1A from HarborView Mortgage Loan Trust 2006-BU1
Global Credit Research - 22 Mar 2017
New York, March 22, 2017 -- Moody's Investors Service has upgraded the rating of Class 2A-1A from HarborView Mortgage Loan Trust 2006-BU1.

Complete rating actions are as follows:

Issuer: HarborView Mortgage Loan Trust 2006-BU1

Cl. 2A-1A, Upgraded to B3 (sf); previously on Dec 5, 2010 Downgraded to Caa2 (sf)

RATINGS RATIONALE

The action primarily results from the correction of errors in the cash-flow model used by Moody's in rating this transaction. In the modeling used in prior actions, the cash-flow waterfalls were allocating an incorrect portion of excess cash-flow and realized losses to senior bonds. These errors have now been corrected, and today's rating action on this bond reflects the appropriate allocation of excess cash-flow and realized losses, as well as the recent performance of the underlying pools and Moody's updated loss expectations on those pools.

The principal methodology used in this rating was "US RMBS Surveillance Methodology" published in January 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Factors that would lead to an upgrade or downgrade of the rating:

Ratings in the US RMBS sector remain exposed to the high level of macroeconomic uncertainty, and in particular the unemployment rate. The unemployment rate fell to 4.7% in February 2017 from 4.9% in February 2016. Moody's forecasts an unemployment central range of 4.5% to 5.5% for the 2017 year. Deviations from this central scenario could lead to rating actions in the sector.

House prices are another key driver of US RMBS performance. Moody's expects house prices to continue to rise in 2017. Lower increases than Moody's expects or decreases could lead to negative rating actions.

Finally, performance of RMBS continues to remain highly dependent on servicer procedures. Any change resulting from servicing transfers or other policy or regulatory change can impact the performance of these transactions.