Powered by MOMENTUM MEDIA
subscribe to our newsletter
Firstmac receives top rating for RMBS

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”.

Advertisement
Advertisement

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.

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
  • 23
    Days
  • :
  • 07
    Hours
  • :
  • 54
    Minutes
  • :
  • 01
    Seconds

EARLY BIRD CLOSING SOON
Have you secured yours?

Latest News

Mitigating drivers of misconduct in the financial services industry will be a key area of focus for regulators in the Asia-Pacific region in...

Financial institutions in Asia Pacific will face myriad challenges and risks in 2019 and Australia is no exception, a new S&P report ha...

Regulatory reform proposed by the federal government would remove barriers to enhanced competition in the banking sector, COBA has said. ...

FROM THE WEB
podcast

LATEST PODCAST: The broking industry hits new heights

Is enough being done to ensure responsible lending?