February 22, 2017 / 5:58 AM / in 8 months

Fitch Affirms 14 FirstMac RMBS Transactions; Outlook Stable

(The following statement was released by the rating agency) SYDNEY/TOKYO/SINGAPORE, February 22 (Fitch) Fitch Ratings has affirmed the ratings of 38 classes from 14 FirstMac RMBS transactions. All transactions are backed by pools of conforming Australian residential mortgages sourced directly or through third-party introducers. The mortgages were originated in the name of nominee companies on behalf of the trustee, FirstMac Fiduciary Services Pty Ltd, and sold to the various trusts through FirstMac warehouses. A full list of rating action can be found at the end of this commentary. KEY RATING DRIVERS The affirmations reflect Fitch's view that available credit enhancement supports the notes' current ratings, the agency's expectations of Australia's economic conditions and the performance of the underlying loans, which have remained in line with the agency's expectations. FirstMac Mortgage Funding Trust Series 1-2007 had the highest level of 30+days arrears at 3.85% at end-2016, while FirstMac Mortgage Funding Trust No.4 Series 3-2016 recorded the lowest level of 0.16%. This compared with Fitch's 2Q16 Dinkum RMBS Index of 1.14%. The transactions have performed within Fitch's expectations, with minimal losses. The transactions have lenders' mortgage insurance (LMI), with policies provided by Genworth Financial Mortgage Insurance Pty Limited (Insurer Financial Strength Rating: A+/Stable) and QBE Lenders' Mortgage Insurance Limited (Insurer Financial Strength Rating: AA-/Stable). Since closing 88 loans have defaulted across the 14 FirstMac transactions rated by Fitch, resulting in zero losses across the outstanding Fitch-rated notes. LMI covered 87% of the losses, with the rest covered by excess spread. The default model was only run for FirstMac 3-2016. It was not run for the remaining transactions in accordance with Fitch's criteria, as the outstanding ratings are either only 'AAAsf' or a rated junior note is present with no subordination, the transactions do not have revolving periods and a review of pre-determined performance triggers indicates the transactions display stable asset performance. RATING SENSITIVITIES Sequential pay down has increased credit enhancement for each transaction's senior notes, with the 'AAAsf' rated notes able to withstand many multiples of the latest reported arrears. The ratings are not expected to be affected by any foreseeable change in performance. The ratings of all the FirstMac transactions' class A notes are independent of downgrade to the LMI providers' ratings. Class B notes of FirstMac 1-2007 may be downgraded if there is deterioration in performance, with losses being above expectations, a significant reduction in the payment of LMI claims or a significant decrease in excess spread. The notes may also be downgraded if Fitch no longer expects the issuer to call the transaction. Fitch's analysis excludes credit to excess spread. No charge-offs have been recorded on any notes. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third-party assessment of the asset portfolio as part of its ongoing monitoring. As part of its ongoing monitoring, Fitch reviewed a small targeted sample of FirstMac Limited's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. SOURCES OF INFORMATION The information below was used in the analysis: Loan-by-loan data provided by FirstMac Limited as at end-2016; Transaction reporting data provided by FirstMac Limited as at end-2016; and Loan enforcement details provided by FirstMac Limited as at end-2016. The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. The full list of rating action is shown below with balances as at end-2016: FirstMac Mortgage Funding Trust Series 1-2007: AUD63.4m Class A notes (ISIN AU0000FMAHA0) affirmed at 'AAAsf'; Outlook Stable; AUD7.7m Class AB notes (ISIN AU3FN0001889) affirmed at 'AAAsf'; Outlook Stable; and AUD27.0m Class B notes (ISIN AU3FN0001897) affirmed at 'BBsf'; Outlook Stable. FirstMac Mortgage Funding Trust Series 1-2010: AUD92.3m Class A-3 notes (ISIN AU3FN0011441) affirmed at 'AAAsf'; Outlook Stable; and AUD18.3m Class AB notes (ISIN AU3FN0011458) affirmed at 'AAAsf'; Outlook Stable. FirstMac Mortgage Funding Trust Series 2-2011: AUD10.8m Class A-2 notes (ISIN AU3FN0014775) affirmed at 'AAAsf'; Outlook Stable; AUD87.7m Class A-3 notes (ISIN AU3FN0014783) affirmed at 'AAAsf'; Outlook Stable; and AUD7.8m Class AB notes (ISIN AU3FN0014791) affirmed at 'AAAsf'; Outlook Stable. FirstMac Mortgage Funding Trust Series 1-2012: AUD83.4m Class A-2 notes (ISIN AU3FN0016135) affirmed at 'AAAsf'; Outlook Stable; and AUD8.7m Class AB notes (ISIN AU3FN0016143) affirmed at 'AAAsf'; Outlook Stable. FirstMac Mortgage Funding Trust Series 3-2012: AUD71.9m Class A-1 notes (ISIN AU3FN0017570) affirmed at 'AAAsf'; Outlook Stable; AUD73.0m Class A-2 notes (ISIN AU3CB0203313) affirmed at 'AAAsf'; Outlook Stable; and AUD12.6m Class AB notes (ISIN AU3FN0017588) affirmed at 'AAAsf'; Outlook Stable. FirstMac Mortgage Funding Trust Series 1E-2013: AUD59.2m Class A-1 notes (ISIN AU3FN0019436) affirmed at 'AAAsf'; Outlook Stable; AUD125.8m Class A-2R notes (ISIN AU3FN0031571) affirmed at 'AAAsf'; Outlook Stable; and AUD17.8m Class AB notes (ISIN AU3FN0019279) affirmed at 'AAAsf'; Outlook Stable. FirstMac Mortgage Funding Trust Series 2E-2013: AUD24.8m Class A-1 notes (ISIN AU3FN0020939) affirmed at 'AAAsf'; Outlook Stable; and AUD133.1m Class A-2R notes (ISIN AU3FN0033478) affirmed at 'AAAsf'; Outlook Stable. FirstMac Mortgage Funding Trust No.4 Series 1A-2014: AUD57.8Class A-1 notes (ISIN AU3FN0023453) affirmed at 'AAAsf'; Outlook Stable; AUD248.5m Class A-2R notes (ISIN AU3FN0031670) affirmed at 'AAAsf'; Outlook Stable; and AUD11.7m Class A-3 notes (ISIN AU3FN0023461) affirmed at ' AAAsf '; Outlook Stable. Firstmac Mortgage Funding Trust No.4 Series 2-2014: AUD110.9m Class A-1 notes (ISIN AU3FN0024618) affirmed at 'AAAsf'; Outlook Stable; AUD188.4m Class A-2 notes (ISIN AU3FN0024626) affirmed at 'AAAsf'; Outlook Stable; and AUD14.8m Class A-3 notes (ISIN AU3FN0024634) affirmed at 'AAAsf'; Outlook Stable. FIRSTMAC MORTGAGE FUNDING TRUST NO. 4 SERIES 3PP-2014: AUD319.3m Class A-1 notes (ISIN AU3FN0025813) affirmed at 'AAAsf'; Outlook Stable; and AUD18.8m Class A-2 notes (ISIN AU3FN0025821) affirmed at 'AAAsf'; Outlook Stable. Firstmac Mortgage Funding Trust No. 4 Series 1-2015: AUD318.3m Class A-1 notes (ISIN AU3FN0027405) affirmed at 'AAAsf'; Outlook Stable; AUD212.2m Class A-2 notes (ISIN AU3FN0027413) affirmed at 'AAAsf'; Outlook Stable; and AUD25.9m Class A-3 notes (ISIN AU3FN0027421) affirmed at 'AAAsf'; Outlook Stable. Firstmac Mortgage Funding Trust No.4 Series 2-2015: AUD275.7m Class A-1a notes (ISIN AU3FN0029427) affirmed at 'AAAsf'; Outlook Stable; AUD25.0m Class A-1b notes (ISIN AU3CB0233880) affirmed at 'AAAsf'; Outlook Stable; AUD0.0m Class A-1R notes affirmed at 'AAAsf'; Outlook Stable; and AUD19.8m Class A-2 notes (ISIN AU3FN0029435) affirmed at 'AAAsf'; Outlook Stable. Firstmac Mortgage Funding Trust No. 4 Series 2-2016: AUD339.5m Class A-1a notes (ISIN AU3FN0031365) affirmed at 'AAAsf'; Outlook Stable; AUD17.1m Class A-1b notes (ISIN AU3FN0031373) affirmed at 'AAAsf'; Outlook Stable; and AUD31.4m Class A-2 notes (ISINAU3FN0031381) affirmed at 'AAAsf'; Outlook Stable. Firstmac Mortgage Funding Trust No. 4 Series 3-2016: AUD478.0m Class A-1 notes (ISIN AU3FN0032728) affirmed at 'AAAsf'; Outlook Stable; and AUD40.3m Class A-2 notes (ISIN AU3FN0032736) affirmed at 'AAAsf'; Outlook Stable. Contacts: Lead Surveillance Analyst Hai Duong Le Associate Director +61 2 8256 0358 Fitch Australia Pty Ltd Level 15, 77 King St, Sydney, NSW 2000 Australia Committee Chairperson Atsushi Kuroda Senior Director +81 3 3288 2692 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available at www.fitchratings.com Applicable Criteria APAC Residential Mortgage Criteria (pub. 30 Aug 2016) here Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016) here Counterparty Criteria for Structured Finance and Covered Bonds: Derivative Addendum (pub. 18 Jul 2016) here Global Criteria for Lenders’ Mortgage Insurance in RMBS (pub. 28 Jul 2016) here Global Structured Finance Rating Criteria (pub. 27 Jun 2016) here Related Research FirstMac Mortgage Funding Trust No. 4 Series 1A-2014 here FirstMac Mortgage Funding Trust No. 4 Series 3-2016 here FirstMac Mortgage Funding Trust Series 1-2007 (Australia RMBS) here FirstMac Mortgage Funding Trust Series 1-2010 here FirstMac Mortgage Funding Trust Series 1-2012 here FirstMac Mortgage Funding Trust Series 2-2011 here FirstMac Mortgage Funding Trust Series 3-2012 here Firstmac Mortgage Funding Trust No. 4 Series 1-2015 here Firstmac Mortgage Funding Trust No.4 Series 2-201 5 - New Issue here Firstmac Mortgage Funding Trust No.4 Series 2-2014 here Firstmac Mortgage Funding Trust No.4 Series 2-2016 here Firstmac Mortgage Funding Trust No.4 Series 3PP-2014 here Firstmac Mortgage Funding Trust Series 1E-2013 - New Issue here Firstmac Mortgage Funding Trust Series 2E-2013 here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here _id=1019339 Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below