DBRS Rates New Citigroup Issuance

Independent credit-rating agency DBRS on Monday assigned ratings to a new issuance out of Citigroup (C). The new issuance — one of the first major private-market issuances in several years — comes as deals involving residential mortgages have begun picking up in recent months, according to a DBRS spokesperson. The certificates involved in the ratings assignments, within Citigroup Mortgage Loan Trust 2009-B, are worth nearly $300m combined. Nine of the classes received triple-A ratings, while one received a double-A and one received a single-A rating. Three Class B certificates received triple-, double- and single-B ratings. DBRS said the triple-A ratings reflect the 2% of credit enhancement provided by subordination. The other classes bear credit enhancement below 2%, down to 0.65%. Interest and then principal will be paid on the pass-through certificates beginning in August 2009, with payments going first to senior and then subordinated certificates. The trust contains CitiMortgage-originated loans that are on average 94 months seasoned first-lien, prime, fixed-rate mortgages secured by one- to four-family residential properties. The loans consist of 30- and 15-year fixed-rate mortgages that as of July 1 bore an aggregate principle balance of $151.71m. The loans bear a weighted-average mortgage rate of 5.56% and a weighted-average FICO score of 774. The weighted-average original and amortizing loan-to-value ratios are 48.14% and 36.77% based on the original appraised values. Write to Diana Golobay.