Powered by MOMENTUM MEDIA
subscribe to our newsletter
Regional bank’s $782m RMBS rated ‘highest quality’ by Moody’s

Regional bank’s $782m RMBS rated ‘highest quality’ by Moody’s

Ratings agency Moody’s has assigned a definitive rating to Bendigo and Adelaide Bank’s first RMBS transaction for 2017.

Moody’s Investors Service last week assigned Bendigo and Adelaide Bank’s $782 million class A1 notes, of its Torrens Series 2017-1 Trust, a rating of Aaa (sf).

Obligations rated Aaa by Moody’s are judged to be of the “highest quality, subject to the lowest level of credit risk”.

Advertisement
Advertisement

The $28 million Class A2 Notes, $17 million Class AB Notes, $11 million Class B Notes, $5 million Class C Notes and $4 million Class D Notes are not rated by Moody's.

In explaining the rationale for the rating, Moody’s explained that it takes into account, among other factors, the experience of Bendigo and Adelaide Bank in servicing residential mortgage portfolios.

“This is BEN's 34th securitisation, which highlights BEN's experience as a manager and servicer of securitised transactions,” Moody’s said.

It added: “Moody's expected loss for this transaction is 0.50 per cent prior to LMI benefit.”

Further, Moody’s highlighted that one of the key transactional and pool features of the RMBS is that the portfolio exhibits some “geographical over-concentration” in South Australia (22.1 per cent) due to the nature of the bank’s third-party distribution network.

[Related: Regional bank prices $700m RMBS transaction]

Regional bank’s $782m RMBS rated ‘highest quality’ by Moody’s
mortgagebusiness

 

Latest News

The banking sector has collectively recorded a sharp year-on-year contraction in new home loan settlements in light of tighter credit condit...

The ABA has launched a consultation on formulating a new guideline for how banks deal with vulnerable customers. ...

Buying a house is viewed as less feasible than starting a business by Millennials, who still aspire to own a home, a new study has found. ...

FROM THE WEB
podcast

LATEST PODCAST: Coalition government and CBA delays

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?