S&P Updates Australian RMBS Criteria

Apr 30, 2001, 01:00 ET from Standard & Poor's

    MELBOURNE, April 30 /PRNewswire/ -- Standard & Poor's has released updated
 criteria for rating Australian residential mortgage-backed securities (RMBS).
 The criteria concentrates on three main areas, including:
 
     -- The credit quality of the loans and related security, which reflects
        the experience and competency of the underwriter as well as the loan
        characteristics;
     -- Structural features of the transaction, such as the transaction's cash
        flows; and
     -- Legal aspects of the transaction.
 
     Standard & Poor's assesses each of these areas and tests the robustness of
 an RMBS transaction using various assumptions on delinquencies, defaults,
 interest rates, and prepayments.
     "Standard & Poor's regularly reviews its criteria in rating Australian
 RMBS, using the latest information available on the underwriting and
 performance of residential mortgages in the Australian market and the
 experience gained in rating Australian RMBS for more than 10 years,"
 Melbourne-based Standard & Poor's director, Fabienne Michaux, said today.
     "Standard & Poor's has outstanding ratings on both mortgage-backed bonds
 and mortgage-backed commercial paper totaling about A$58 billion, where the
 underlying loans have been originated by banks, nonbank lenders, insurance
 companies, and government agencies," Ms. Michaux said.
     The full report, "Australian Residential Mortgage-Backed Securities
 Criteria", is available on RatingsDirect, Standard & Poor's real-time source
 for credit ratings information, and on the Web at www.standardandpoors.com.au.
 Click on Resource Centre, then under Methodology/Ratings Criteria, select
 Structured Finance, and then residential mortgage-backed securities. --
 CreditWire
 
 

SOURCE Standard & Poor's
    MELBOURNE, April 30 /PRNewswire/ -- Standard & Poor's has released updated
 criteria for rating Australian residential mortgage-backed securities (RMBS).
 The criteria concentrates on three main areas, including:
 
     -- The credit quality of the loans and related security, which reflects
        the experience and competency of the underwriter as well as the loan
        characteristics;
     -- Structural features of the transaction, such as the transaction's cash
        flows; and
     -- Legal aspects of the transaction.
 
     Standard & Poor's assesses each of these areas and tests the robustness of
 an RMBS transaction using various assumptions on delinquencies, defaults,
 interest rates, and prepayments.
     "Standard & Poor's regularly reviews its criteria in rating Australian
 RMBS, using the latest information available on the underwriting and
 performance of residential mortgages in the Australian market and the
 experience gained in rating Australian RMBS for more than 10 years,"
 Melbourne-based Standard & Poor's director, Fabienne Michaux, said today.
     "Standard & Poor's has outstanding ratings on both mortgage-backed bonds
 and mortgage-backed commercial paper totaling about A$58 billion, where the
 underlying loans have been originated by banks, nonbank lenders, insurance
 companies, and government agencies," Ms. Michaux said.
     The full report, "Australian Residential Mortgage-Backed Securities
 Criteria", is available on RatingsDirect, Standard & Poor's real-time source
 for credit ratings information, and on the Web at www.standardandpoors.com.au.
 Click on Resource Centre, then under Methodology/Ratings Criteria, select
 Structured Finance, and then residential mortgage-backed securities. --
 CreditWire
 
 SOURCE  Standard & Poor's