S&P: Integrity Series 2014-1 Trust RMBS Class B Note Rating Raised; Class A1 And Class A2 Notes Affirmed
The rating actions follow the sale of approximately A$26.9 million of mortgage loans from the trust. The proceeds of the sale are paid down the principal waterfall to the class A1 notes, at which point we expect the class A1 notes to be paid in full.
The ratings reflect:Our view of the credit risk of the underlying collateral portfolio, after the repurchase of the loans, to remain diversified and sizable. As of May 2016, the portfolio has 2,221 consolidated loans. The weighted-average seasoning of the pool is 109.8 months, of which 84.4% of the loans are seasoned by more than five years, and a weighted-average current loan-to-value ratio of 58.6%.Credit support provided to the notes is in excess of the credit support required at its rating level. This credit support comprises mortgage insurance to 100% of the portfolio, which covers 100% of the face value of the loans, accrued interest, and reasonable costs of enforcement. Integris Securitisation Services Pty Ltd. as master servicer, which oversees the nominated sellers in the management of the loans in arrears. Arrears to date have performed above Standard & Poor's Performance Index (SPIN) for Australian prime RMBS transactions. As of May 2016, 2.5% of the pool balance is in arrears by more than 30 days. There have been no reported losses to date. Our expectation that the various mechanisms to support liquidity within the transaction, including principal draws and an amortizing liquidity facility initially equal to 1.8% of the initial aggregate principal outstanding of all mortgage loans, are sufficient under our stress assumptions to support timely payment of interest.
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