Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Firstmac receives AAA credit ratings

Four classes of Firstmac’s prime residential mortgage-backed securities (RMBS) have been assigned AAA ratings by Standard & Poor’s (S&P).

The non-bank lender received the ratings for its A-1a, A-1b, A-2 and AB classes of RMBS to be issued by Firstmac Fiduciary Services as a trustee for Firstmac Mortgage Funding Trust No. 4 Series 2-2015 – a securitisation of prime residential mortgages originated by Firstmac.

S&P said its ratings reflect its view of that the credit support is sufficient to withstand the stresses that it applies.

Advertisement
Advertisement

“This credit support comprises lenders’ mortgage insurance to 54.8 per cent of the portfolio, which covers 100 per cent of the face value of these loans, accrued interest, and reasonable costs of enforcement, as well as note subordination for all rated notes,” it said.

The credit ratings agency added that it expects the various mechanisms to support liquidity within the transaction are sufficient under its stress assumptions to ensure timely payment of interest.

S&P also noted the fixed-to-floating interest-rate swap provided by ANZ to hedge the mismatch between receipts from fixed-rate mortgage loans and the variable-rate RMBS was a positive factor in determining the ratings.

Firstmac receives AAA credit ratings
mortgagebusiness

Latest News

A non-major lender has slashed rates across both its fixed and variable rate home loan offerings by up to 61 bps. ...

The non-bank has reported sharp growth in home loan settlements, capitalising on a “flow away” from established lenders. ...

The UK fintech has announced that it has appointed the first members of its Australian executive team, including its CEO, CCO and CRO, as it...

FROM THE WEB
podcast

LATEST PODCAST: ASIC releases draft best interests duty guidance

Do you think Australia will move to quantitative easing this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.