Powered by MOMENTUM MEDIA
subscribe to our newsletter

Resimac receives credit ratings boost

Non-bank lender Resimac has been assigned the top credit rating for three classes of its prime residential mortgage-backed securities (RMBS) by Standard & Poor’s (S&P).

The credit ratings agency assigned a AAA rating to Resimac’s A1, A2 and AB classes of RMBS issued by Perpetual Trustee Co as a trustee for Resimac Triomphe Trust – Resimac Premier Series 2016-1.

S&P said its ratings reflect the credit risk of Resimac’s underlying collateral portfolio, including that it is a closed portfolio, “which means that no further loans will be assigned to the trust after the closing date”.

Furthermore, S&P said the ratings reflect that this portfolio’s credit support is sufficient to withstand the pressures applied by the agency.

“This credit support comprises lenders’ mortgage insurance on 32.4 per cent of the loans in the portfolio, which provides cover for 100 per cent of the face value of the insured loans, accrued interest, and reasonable costs of enforcement, as well as note subordination for the rated notes,” it said.

Advertisement
Advertisement

PROMOTED CONTENT


S&P also noted that the interest-rate risk between any fixed-rate mortgages and the floating-rate obligations on the notes are appropriately hedged via interest-rate swaps to be provided by an appropriately rated interest-rate swap provider.

[Related: Resimac receives top ratings for prime RMBS]

Resimac receives credit ratings boost
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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