MELBOURNE (S&P Global Ratings) May 18, 2023--S&P Global Ratings today raised its ratings on two classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC Triomphe Trust - RESIMAC Premier Series 2019-1. At the same time, we affirmed our ratings on four classes of notes issued out of the same trust (see list).
The rating actions reflect our view of the credit support available, which is sufficient to withstand the stresses we apply. Credit support comprises note subordination for all rated notes, lenders' mortgage insurance covering 16.8% of the loan pool, and excess spread, if any.
The overall credit quality of the underlying collateral pool, which as of April 30, 2023, has a pool factor of 31.1%, continues to improve, with weighted-average seasoning of 59 months and a current weighted-average loan-to-value ratio of 60%. These positive factors lower our expectation of loss.
The pool has generally displayed good asset performance, having tracked below the Standard & Poor's Performance Index since inception, with the exception of recent months, which has seen elevated arrears levels. As of April 30, 2023, loans greater than 30 days in arrears comprise 1.1% of the total portfolio. There have been minimal losses to date, A$9,563 as of April 30, 2023, all of which have been covered by excess spread.
The transaction's cash flows support the timely payment of interest and ultimate payment of principal to the rated classes of notes under our rating stress assumptions.
The rated classes of notes are currently paying on a pro rata basis since conditions are met. These include meeting performance triggers and the call-option date not having occurred.
Our expectation is that the various mechanisms to support liquidity within the transactions, including principal draws, and amortizing liquidity facility are sufficient to ensure timely payment of interest.
Related Criteria
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings , Oct. 10, 2021
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash Flow Analysis Of Structured Finance Securities , Dec. 22, 2020
- Criteria | Structured Finance | General: Methodology To Derive Stressed Interest Rates In Structured Finance , Oct. 18, 2019
- Criteria | Structured Finance | General: Counterparty Risk Framework: Methodology And Assumptions , March 8, 2019
- Legal Criteria: Structured Finance: Asset Isolation And Special-Purpose Entity Methodology , March 29, 2017
- Criteria | Structured Finance | RMBS: Methodology For Assessing Mortgage Insurance And Similar Guarantees And Supports In Structured And Public Sector Finance And Covered Bonds , Dec. 7, 2014
- Criteria | Structured Finance | General: Global Framework For Assessing Operational Risk In Structured Finance Transactions , Oct. 9, 2014
- Criteria | Structured Finance | RMBS: Assumptions: Australian RMBS Postcode Classification Assumptions , July 10, 2013
- Criteria | Structured Finance | General: Global Derivative Agreement Criteria , June 24, 2013
- General Criteria: Global Investment Criteria For Temporary Investments In Transaction Accounts , May 31, 2012
- Criteria | Structured Finance | RMBS: Australian RMBS Rating Methodology And Assumptions , Sept. 1, 2011
- General Criteria: Principles Of Credit Ratings , Feb. 16, 2011
- Criteria | Structured Finance | RMBS: Methodology And Assumptions For Analyzing The Cash Flow And Payment Structures Of Australian And New Zealand RMBS , June 2, 2010
- Criteria | Structured Finance | General: Methodology For Servicer Risk Assessment , May 28, 2009
Related Research
- 2023 Outlook Assumptions For The Australian RMBS Market, Jan. 6, 2023
- An Overview Of Australia’s Housing Market And Residential Mortgage-Backed Securities, Nov. 28, 2022
- ESG Industry Report Card: Residential Mortgage-Backed Securities, March 31, 2021
- Australian Prime And Nonconforming RMBS: What's The Difference? Nov. 17, 2019
- Australia And New Zealand Structured Finance Scenario And Sensitivity Analysis: Understanding The Effects Of Macroeconomic Factors On Credit Quality, April 17, 2017
- Global Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five Macroeconomic Factors, Dec. 16, 2016
- RMBS Performance Watch: Australia, published quarterly
- RMBS Arrears Statistics: Australia, published monthly
Ratings Raised
RESIMAC Triomphe Trust - RESIMAC Premier Series 2019-1
- Class C: to AA+ (sf) from AA (sf)
- Class D: to A+ (sf) from A (sf)
Ratings Affirmed
RESIMAC Triomphe Trust - RESIMAC Premier Series 2019-1
- Class A1-L: AAA (sf)
- Class AB: AAA (sf)
- Class B: AAA (sf)
- Class E: BBB (sf)
REGULATORY DISCLOSURES
Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.
AUSTRALIA
S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).
Primary Credit Analyst: | Justin Rockman, Melbourne + 61 3 9631 2183; justin.rockman@spglobal.com |
Secondary Contact: | Elizabeth A Steenson, Melbourne + 61 3 9631 2162; elizabeth.steenson@spglobal.com |
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