Powered by MOMENTUM MEDIA
subscribe to our newsletter

Firstmac receives top rating for RMBS

Standard & Poor’s (S&P) has assigned a AAA credit rating for three classes of Firstmac’s prime residential mortgage-backed securities (RMBS).

The credit ratings agency assigned the ratings to Firstmac’s A-1a, A-1b and A-2 classes of RMBS to be issued by Firstmac Fiduciary Services as a trustee for Firstmac Mortgage Funding Trust No.4 Series 2-2016.

S&P said its ratings reflect the credit risk of the underlying credit portfolio, including the fact 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 its ratings reflect that the portfolio’s credit support is sufficient to withstand the stresses applied by the agency.

“This credit support comprises lenders’ mortgage insurance to 16.7 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.

Advertisement
Advertisement

PROMOTED CONTENT


S&P also noted that the ratings reflect Firstmac’s underwriting and servicing standards, as well as its centralised approval process.

[Related: Resimac receives credit ratings boost]

Firstmac receives top rating for RMBS
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.