MTG Ariera Trust Repo Series No.1 Prime RMBS Rating Affirmed

Stocks and Financial Services Press Releases Monday June 18, 2018 17:24
MELBOURNE--18 Jun--S&P Global Ratings

MELBOURNE (S&P Global Ratings) June 18, 2018--S&P Global Ratings today affirmed its 'AAA (sf)' rating on the class A prime residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee of MTG Ariera Trust Repo Series No.1 (see list). MTG Ariera Trust Repo Series No.1 is a securitization of prime residential mortgages originated by Bananacoast Community Credit Union Ltd. (BCU).

The purchase of new assets into the trust is being funded by the issuance of notes. The transaction has a revolving period until April 2027, during which time the trust can hold up to 15% of principal collections for the purchase of new assets.

The rating affirmation reflects:
  • Our view of the credit risk of the underlying collateral portfolio. As of May 2018, the pool has a current pool balance of approximately A$163.36 million. The pool's current weighted-average loan-to-value ratio is 65.4% and the weighted-average seasoning is 48.3 months. Some 14.1% of the portfolio's collateral pool has lenders' mortgage insurance (LMI) covering 100% of the face value of the loans, accrued interest, and reasonable costs of enforcement.
  • Our view that the subordination provided to the class A notes exceeds the minimum assessed credit support at a 'AAA (sf)' level after giving credit to LMI.
  • That the assets being acquired are all loans to self-managed superannuation funds (SMSF). We contemplated the inclusion of SMSF loans originated by BCU when we assigned our rating to the class A notes; however, this is the first time they have been added to the collateral pool. Following the new note issuance, SMSF loans will make up 20.8% of the portfolio.
  • That the liquidity reserve of 1.0% of the aggregate outstanding note balance, funded by note overissuance, is available for required payments.
  • BCU's underwriting standards, processes, and servicing quality, which are consistent with industry-wide practices.
RATING AFFIRMED
Class Rating Amount (mil. A$)
A AAA (sf) 147.8
B NR (sf) 17.5
NR--Not rated.

Latest Press Release

Photo Release: EXIM Thailand Holds FX Risk Management Seminar Phase 2 To Promote FX Risk Hedging Tools for SME Exporters in the Northeast

Mr. Chana Boonyachai (center), Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently welcomed Mrs. Thatsanee Tangpattanasiri (right), Director, Northestern Regional Office, Bank of Thailand (BOT), and Mr. Ranon Keowsuddhi...

Frasers Property Thailands Revenue Increased 341% to 2.577 Billion Baht and Net Profit Rose 190% to 684 Million Baht in Q1/2019

Revenue totalled 2.577 billion baht, an increase of 1.993 billion baht or 341% year-on-year, while net profit totalled 684 million baht, a growth of 190% year-on-year. Embarked on a "Total Dimension" strategy to become leading provider of smart...

Photo Release: EXIM Thailand Visits Xayaburi Hydroelectric Power Project

Mr. Nopporn Thepsithar (fifth left), Chairman of the Board of Executive Directors, Export-Import Bank of Thailand (EXIM Thailand) and Dr. Narongchai Akarasanee (center), former Minister of Energy, recently visited Xayaburi Hydroelectric Power Project...

Thailands Promotion of Advanced Technology and Eco-system Development Enables Local Producers to Fly Higher

Thailand has been experiencing a gradual shift from a manufacturing to a high-value manufacturing economy after the country has put all its efforts into promoting the use of advanced technology, science, and innovation in parallel with the development of...

Get 5-Baht Cashback when making payment via K PLUS for BTS tickets until April 30, 2019

To celebrate the latest QR Code payment service via K PLUS for one-way BTS tickets bought from ticket issuing machines at BTS Stations, KBank has teamed up with BTS to offer a cashback of 5 Baht/trip, which will be credited into the passenger's account...

Related Topics