Moody's rates Brazilian Securities certificates

Moody's America Latina said it has assigned a provisional rating of A1.br on the Brazilian national scale and provisional Ba2 on the global local currency scale to the R$6 million reais-denominated series 2006-44 senior certificates to be issued by Brazilian Securities.

Interest and principal to the certificate holders are primarily payable from collections from a pool of residential mortgage loans acquired by Brazilian Securities from real estate developers and also from Brazilian Mortgage Companhia Hipotecaria, a mortgage company owned by the same shareholders of Brazilian Securities.

Moody's said its provisional ratings primarily reflect the credit enhancement of 11% in the form of 10% subordination and 1% overcollateralization; the availability of a reserve account to cover shortfalls in interest and principal payments, to be funded by the difference between the underlying mortgage payments and the payments of interest and principal on the class A notes during the first 11 months of the transaction; and the credit quality of the underlying assets.

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