An FCC certification of radiation limits on digital devices. Class A certification is for business use. Class B for residential use is more stringent in order to avoid interference with TV and other home reception. See Part 15, Subpart B, of the Federal Register (CFR 47, Parts 0-19).
The class A-1, class A-2 and class B notes are downgraded one category each because the extent of deterioration in the portfolio outweighs the benefit of increased credit enhancement levels from class A-1 amortization.
5 million to class B on the last payment date and corresponding reduction of interest due on the future payment dates, in Fitch's opinion, the use of principal proceeds to pay a portion of class B interest may continue, as long as the hedge remains out of the money.
Class B can sustain a 25% decrease in yield, along with a decline in payment rates by more than 40%, and defaults increasing to a level above 20%, while meeting all investor principal and interest obligations.
Credit enhancement for the class A certificates will consist of the subordination of the class B certificates, a reserve account, a yield maintenance account, excess spread and the certificate insurance policy provided by MBIA.