Moody’s Investor Service has provided top definitive ratings to $255 million of Liberty Financial’s latest residential mortgage-backed securities (RMBS) issue.
The non-bank lender launched its second non-conforming and prime residential RMBS of 2018, called Liberty Series 2018-2, valued at $300 million.
The funding is being raised via six classes of securities, with the majority, or $255 million, being raised through class A notes.
Liberty Financial’s class A and class B securities received a triple A rating from Moody’s.
The notes will be repaid on pro-rata amortisation where principal is allocated across all but class F notes, the ratings agency said.
In terms of risk, Moody’s noted that the portfolio has a “relatively high” weighted-average loan-to-value ratio (LVR) of 70.1 per cent, with 14.7 per cent of the loans with a scheduled LVR higher than 80 per cent and a further 9.4 per cent above 90 per cent.
Further, 7.7 per cent of the loans in the portfolio were extended on an alternative documentation basis, and 0.1 of a percentage point on a low documentation basis, according to the ratings agency.
Moody’s additionally noted that the portfolio has a “low” weight-average seasoning of 3.9 months, with 74.9 per cent of the portfolio originated in the last six months.
The transaction also features a liquidity reserve valued at 3 per cent of the invested amount, with a floor of $600,000 to be funded from the initial proceeds generated from the securities issue.
The ratings agency did not rate the remaining classes B ($18.6 million), C ($8.4 million), D ($5.1 million), E ($4.8 million) and F ($8.1 million).
Liberty Financial’s first non-conforming and prime residential RMBS of the year, managed by Westpac and Credit Suisse, was increased from $400 million to $450 million, with the majority of the classes highly rated.
The big four bank has told ASIC to consider the utility of the ...
AFCA has clarified that for historic complaints involving brokers...
Small-business lender Capify has appointed Dino Pacella as its fi...