Bluestone receives upgraded S&P rating

Bluestone has announced that S&P has upgraded its servicer rating from “above average” to “strong”, off the back of an operational overhaul.

According to Bluestone, its new “strong” rating now represents the highest rating a residential mortgage-backed security (RMBS) issuer can achieve.

The non-bank lender credits its “extensive operational improvements” and “significant investments” in IT systems and corporate infrastructure as contributors to the improved S&P rating.

Bluestone CFO Todd Lawler said: “Achieving a ‘strong’ rating is a significant milestone as it validates the many improvements made by our funding and operational teams, and the support of our parent company to invest in our long-term growth and stability.  

“We are proud of this achievement and look forward to continuing to service our investors and customers to the highest standards.”

The announcement comes off the back of Bluestone’s two RMBS transactions in 2019 under its Sapphire program.

In April, Bluestone completed its first securitisation in 2019 with a $400-million Sapphire XXI 2019-1 RMBS issuance, which was the lender’s first CRD IV-compliant deal, opening it up to a new international investor base, which the lender said resulted in “unprecedented investor support”.

Its second securitisation in 2019 was completed in September to the sum of $450 million, and reportedly incorporated a higher percentage of prime and near prime loans compared with previous pools, appealing to a broad range of investors.

Bluestone CEO Campbell Smyth said, “Over the past 18 months, Bluestone has seen transformational changes that have allowed us to expand our operations across APAC significantly. 

“Today’s upgraded rating is particularly validating as it confirms that our strong home loan growth is matched by ever-increasing levels of quality.”

[Related: Bluestone secures $450m RMBS]