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

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics