The FINANCIAL — Sydney/Hong Kong-18 July 2011: Fitch Ratings has said that Q211 was characterised by stable ratings on structured finance tranches backed by assets in Australia and New Zealand, with affirmations again dominating rating actions.
"Due to the overall high quality of mortgage pools and robust nature of the mortgage market in Australia and New Zealand, the underlying performing assets have performed well, as illustrated by the number of affirmations," said James Zanesi, Associate Director in Fitch's Structured Finance team. "However, some RMBS tranches remain on Rating Watch Negative, pending the publication of Fitch's criteria on the credit given to lenders' mortgage insurance in RMBS,' added Mr. Zanesi.
During Q211, Fitch affirmed over 80 publicly-rated Australian and New Zealand structured finance tranches with Long-term international ratings and upgraded two tranches. No tranches were downgraded.
Two tranches from the Australian ABS transaction Liberty Series 2010-1 Auto trust were upgraded during the quarter. These upgrades follow an increase in the guarantee fee reserve amount and the amortisation of the transaction which has resulted in the build up of credit enhancement for the class B and D notes.
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