Indicators of mortgage securities in Russia and the CIS has stabilized in the I half

The level of delay for most mortgage loans that are collateral for the securities in Russia and the CIS countries remains fairly stable level over the past 12 months ended in May 2010, follows from the analytical report of the international rating agency Moody 's.

Two exceptions to the overall stability of the dynamics represented securities issues Kazakh MBS 2007-1 and Moscow Stars BV Arrears on mortgage loans in the release of Kazakh MBS 2007-1 has increased steadily, reaching 3.23% in May this year, compared with 0.05% year earlier. Mortgage loans in the release of Moscow Stars also demonstrated a high level of defaults, which in May 2010 reached 8.46% of total loans. Defaulted on loans in this case, the agency identified as late payments on them for 90 days or more compared with the established in the contract period.

The level of delay on the remaining issues of securities secured by a pool of mortgage loans declined during the past six months, and the amount of losses remained at an insignificant level.

Nevertheless, the agency noted that due to differences in the definitions of "delinquency" and "default", as well as in connection with a variety of practices repurchase loans that have been recognized Defaulted, objective assessment of the performance of securities secured by a pool of mortgage loans, as well as comparison of the various editions of these securities more difficult.

In Moody 's also noted that Russia's economy continues to recover, but the risks to its translational motion persist. The main factors of economic growth in Russia in the first half of the agency believe the growth of the volume of energy exports, as well as significant public expenditure. Strengthening of the ruble, however, could undermine the recovery of exports from Russia, experts believe that Moody 's, by projections that the economy will grow by 3,9% in 2010 and 4,2% in 2011.

Topic: CIS, MBS