Powered by MOMENTUM MEDIA
Broker Daily logo

Resimac RMBS assigned AAA credit ratings

Standard & Poor’s (S&P) has assigned fresh ratings to three classes of prime residential mortgage-backed securities originated by Resimac.

The Resimac Triomphe Trust – Resimac Premier Series 2015-1 included $450 million worth of Class A notes and $30 million worth of Class AB notes, with both classes receiving an AAA rating, while its Class B2 notes worth $17.5 million were assigned an A+ rating.

S&P said its ratings reflect its view on factors including the credit risk of the underlying collateral portfolio, credit support, Resimac’s expense reserve and its management of interest rate risk.

“The credit support is sufficient to withstand the stresses we apply,” it said.

==
==

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

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

S&P said interest rate risk between any fixed-rate mortgages and the floating rate obligations on the RMBS notes are appropriately hedged via an interest rate swap to be provided by NAB.

More on Economy
21 November 2024
After witnessing some positive trends in the offset of COVID-19, business failures across the country have picked up ...
21 November 2024
With GDP growth at just 0.2 per cent as of the June quarter of 2024, small and medium-sized enterprises (SMEs) are ...
20 November 2024
The RBA minutes for the November meeting revealed that members recognised the importance of flexibility in monetary ...