Murray Trust Repo Series No.1 RMBS Class A Note Rating Affirmed After Note Issuance

Stocks and Financial Services Press Releases Tuesday March 15, 2016 16:03
MELBOURNE--15 Mar--Standard & Poor's

MELBOURNE (Standard & Poor's) March 15, 2016--Standard & Poor's Ratings Services today affirmed its 'AAA (sf)' rating on the class A residential mortgage-backed securities (RMBS) issued by Perpetual Ltd. as trustee for Murray Trust Repo Series No.1.

The rating affirmation follows the issuance of class A notes that increased the aggregate total amount of class A and class B notes issued to approximately A$135.5 million. The proceeds from the note issuance will be used to fund the acquisition of additional loans, as contemplated in the transaction structure

The affirmation reflects:
Our view of the credit risk of the underlying collateral portfolio, which has a weighted-average current loan-to-value ratio of 68.8% and weighted-average loan seasoning of 53.5 months.

More than 68% of the collateral pool is concentrated in three postcodes, reflective of Hume Bank Ltd.'s branch footprint. We have increased the default frequency in our credit assessment of the portfolio to reflect our view that clustered geographic distributions are at greater risk of being adversely affected by a localized economic downturn. At 97.7%, the portfolio contains a heavy concentration of security properties that we classify as nonmetropolitan.

We have increased the default frequency and assumed a longer foreclosure period for such loans.

Our view that the support provided by lenders' mortgage insurance (LMI) policies covering 46.2% of the pool of mortgages and the 6.6% subordination provided by the class B notes are sufficient to withstand the stresses commensurate with the rating.

The LMI policies on the insured loans cover 100% of the outstanding principal of the loans insured, including accrued interest during the recovery period and reasonable realization costs.

Our expectation that the liquidity reserve, equal to 2.5% of the notes outstanding within the transaction, is adequate under our stress assumptions to cover timely payment of interest.Hume Bank's underwriting standards, processes, and servicing quality, which are consistent with industrywide practices.

There is no swap in this transaction. All loans acquired by the trust must be variable rate.

Hume Bank can convert variable-rate loans in the pool to fixed rate, provided the aggregate percentage of the pool (by balance), which is fixed rate, does not exceed 2%. The current pool consists of 1.5% fixed-rate loans.

Latest Press Release

SET welcomes restaurant operator Zen Corporation Group on February 20

The Stock Exchange of Thailand (SET) will list Zen Corporation Group pcl – a leading operator of restaurant brands in Thailand – on February 20, under the ticker symbol "ZEN". The company has a market capitalization at its initial public...

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...

Related Topics