Powered by MOMENTUM MEDIA
subscribe to our newsletter
Pepper receives top ratings for RMBS

Pepper receives top ratings for RMBS

Standard & Poor’s (S&P) has assigned AAA ratings to four classes of Pepper’s non-conforming residential mortgage-backed securities (RMBS).

The non-bank lender received the ratings for its A1-a, AR-u and A2 classes of RMBS to be issued by Permanent Custodians as a trustee of Pepper Residential Securities Trust No. 16.

S&P said its ratings reflect the credit risk of the underlying collateral portfolio, including its view that the credit support is sufficient to withstand the stresses that the credit agency applies.

The underwriting standard and centralised approval process of the seller (Pepper) was another significant factor in determining the ratings, according to S&P.

“Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 2.5 per cent of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest,” it added.

[Related: Pepper announces ‘landmark transaction’]

Pepper receives top ratings for RMBS
mortgagebusiness

Latest News

The federal government has announced that it will be providing an additional $51.5 million to the public prosecutor to battle criminal misco...

The prudential regulator’s work has helped ensure that the financial system remains “resilient” when Australia’s “economic summer ...

Less than a fifth of properties have been sold for more than their original list price over the past quarter, according to new data from Cor...

FROM THE WEB
podcast

LATEST PODCAST: How bank ‘simplification’ is aiding the non-bank sector

Is enough being done to ensure responsible lending?