(The following was released by the rating agency)
MELBOURNE (Standard & Poor‘s) Dec. 10, 2012--Standard & Poor’s Ratings Services today assigned its preliminary ratings to the five classes of prime residential mortgage-backed securities (RMBS) to be issued by FirstMac Fiduciary Services Pty Ltd. as trustee of FirstMac Mortgage Funding Trust Series 3-2012 (see list).
The preliminary ratings reflect:
-- Our view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date.
-- Our view that the credit support is sufficient to withstand the stresses we apply. This credit support comprises mortgage insurance covering 100% of the face value of all loans, accrued interest, and reasonable costs of enforcement; and note subordination for the class A, class AB, and class B-1 notes.
-- Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity reserve equal to 0.8% of the invested amount of all notes, principal draws, a A$1.8 million spread reserve that builds from 50% of available excess spread, and 24 months’ timely payment cover on approximately 86.7% of loans in the portfolio, are sufficient under our stress assumptions to ensure timely payment of interest.
-- Our view of the underwriting standards and centralized approval processes of the originator, FirstMac Ltd., together with our view on the servicing standards of FirstMac Ltd. as the servicer of the loans.
-- The fixed-to-floating interest-rate swap to be provided by [Australia and New Zealand Banking Group Ltd.] (ANZ; AA-/Stable/A-1+) to hedge the mismatch between receipts from fixed-rate mortgage loans and the variable-rate RMBS.
-- The fixed-rate note swap to be entered into with to hedge the interest-rate risk between the fixed interest rate payable semiannually on the class A2 notes and the monthly interest rate received on the underlying mortgages. The fixed-rate note swap will mature on the class A2 refinancing date. On this date, the notes will either be repaid or convert to monthly floating-rate interest.
A copy of Standard & Poor’s complete report for FirstMac Mortgage Funding Trust Series 3-2012 can be found on Global Credit Portal, Standard & Poor’s Web-based credit analysis system, at “http://www.globalcreditportal.com”.
The issuer has informed Standard & Poor’s (Australia) Pty Limited that the issuer will be publicly disclosing all relevant information about the structured finance instruments that are subject to this rating report.
STANDARD & POOR‘S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities.
The Standard & Poor’s 17g-7 Disclosure Report included in this credit rating report is available at “http://standardandpoorsdisclosure-17g7.com/1162.pdf ”.
Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction.
Class Rating Amount (mil. A$)
A-1 AAA (sf) 226.0
A-2 AAA (sf) 50.0
AB AAA (sf) 12.5
B-1 AA- (sf) 10.0
B-2 AA- (sf) 1.5
-- Counterparty Risk Framework Methodology And Assumptions, Nov. 29, 2012
-- Australia And New Zealand Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors On Ratings, March 29, 2012
-- Australian RMBS Rating Methodology And Assumptions, Sept. 1, 2011
-- Methodology And Assumptions For Analyzing The Cash Flow And Payment Structures Of Australian And New Zealand RMBS, June 2, 2010