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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.
“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.